african review july 2012

Europe €10, Ghana C1.8, Kenya Ksh200, Nigeria N330, South Africa R25, UK £7, USA $12

July 2012

Construction:Mantrac Nigeria MDAyman Ezz El Din P62

Transport:IT that improves trafficmanagement P46

Finance:Satellite technology tosupport banking P40

Making money from structural steel

P74

www.africanreview.com

African Review

of Business and TechnologyJuly 2012 Volum

e 47 Num

ber 15w

ww

.africanreview.com

Generating businessin Africa’s informal

energy markets

P51

ATR July 2012 Cover_Layout 1 21/06/2012 14:41

essential.

www.marellimotori.com

121 Years of Excellence

MarelliMotori®

1891-2012

S01 ATR July 2012 Start_Layout 1 21/06/2012 10:38

Managing Editor: Andrew [email protected]

Editorial and Design team: Bob Adams, David Clancy, Prabhu Dev, Immanuel Devadoss,Ranganath GS, Prashant AP, Genaro Santos,Zsa Tebbit, Nicky Valsamakis, Julian Walker and Ben Watts

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Printed by: Wyndeham Grange LtdUS Mailing Agent:African Review of Business & Technology, USPS. No. 390-890 is published 11 times a year for US$140 per year byAlain Charles Publishing, University House, 11-13 LowerGrosvenor Place, London SW1W 0EX, UK. Peridicals postagepaid at Rahway, New Jersey. Postmaster: send addresscorrections to Alain Charles Publishing Ltd, c/o MercuryAirfreight International Ltd, 365 Blair Rd, Avenel, NJ 07001.

ISSN: 0954 6782

Serving the world of business

UP FRONT

3

REGULARS

FEATURES29 Ghana

Providing and supporting use of photovoltaic systems in Ghana

32 FinanceMicrofinance initiatives and institutions; private equity support for development; informationtechnology for financiers; and satellite connectivity for banking

44 TechnologyHow social media affects the role of the printer

46 TransportSystems and solutions to support management of Kenya’s traffic flows

50 PowerThe past year’s business in markets for generating sets

66 ConstructionSafe use of hydraulic excavators; South Africa’s national infrastructure drive; a product portfolioto address West African markets; plant investment for a structural steel business; androadbuilding with a rotary mixer

79 MiningOngoing business in Ghana’s vibrant minerals sector

04 Agenda: Commercial innovationsand initiatives

22 Bulletin:Key developments withAfrican enterprises

Contents

Europe €10, Ghana C1.8, Kenya Ksh200, Nigeria N330, South Africa R25, UK £7, USA $12

July 2012

Construction:Mantrac Nigeria MDAyman Ezz El Din P62

Transport:IT that improves trafficmanagement P46

Finance:Satellite technology tosupport banking P40

Making money from structural steel

P74

www.africanreview.com

Generating businessin Africa’s informal

energy markets

P51

Editor’s Note

Cover picture: The continuous improvement ofcommercial conditions depends on investment intechnologies to deliver improved infrastructure(Photo: IBM)

P38

P79

Focus on diversification, a broad range of equipment, on delivering reliable, customer-drivensolutions for applications in construction, infrastructure, mining, transportation, energy, and

manufacturing. Focus on financial services, on improved information technology in application,on training and process development.As entities and operations across our continent meet needs with a multitude of practices andprocesses, so imports and exports generate value within economies, and companies compete togrow, to consume, to gain sales, to represent value. Products are key to production. To sell that which is produced is to aid completion of an economiccycle, doing what needs to be done to achieve the amelioration of national and internationalconditions of commerce.So, we see, and we seek to represent, demand and supply, cross-continental trans-regional trade,delivery, provision and service - that is, the application of solutions, the combination of tools andemployees to generate revenues - here and at www.africanreview.com, here and on Twitter,@africanreview.

Andrew Croft, Managing Editor

African Review of Business and Technology - July 2012

Audit Bureau ofCirculations -

Business Magazines


Cisco has opened an EntrepreneurInstitute Training Centre in Morocco in

partnership with the America-MideastEducation and Training Services, Inc.(AMIDEAST). The Entrepreneur Institutewill provide business acceleration skillsthrough the use of technology.

AMIDEAST, a private, nonprofitorganization that strengthens mutualunderstanding and cooperation betweenAmericans and the people of the MiddleEast and North Africa, will offer in-personas well as distance learning sessions, tohelp entrepreneurs from throughout theregion improve their skills and enhancebusiness development opportunities. Itwill also provide a forum for owners ofsmall and medium-sized businesses(SMBs) to collaborate and share businessexpertise.

Small and medium businesses representa significant portion of the North Africanand Middle Eastern economy, andtherefore supporting their developmentand driving their performance canultimately help to accelerate economicgrowth and raise living standards. TheCisco Entrepreneur Institute courses aredesigned to accelerate business throughthe effective use of technology and toencourage innovative solutions and thesharing of best practices, which canthereby enable growth and job creation.

4

NEWS

Casablanca Finance City, a financial centre designed to act as a catalyst for growth inNorth and West Africa, is attracting growing interest from companies in the GCC region.Amongst those realising the potential is an Abu Dhabi-based asset manager Invest A.D.who recently obtained a license.

The Moroccan Financial Board, which is responsible for running Casablanca Finance City,held a seminar in Dubai in June 2012. The seminar attracted senior executives from UAE-based insurance companies, asset managers, banks and other finance firms.

Casablanca Finance City offers specific advantages to businesses operating in financialservices, professional services and insurance, and to regional headquarters ofmultinational firms. With over 2,500 international businesses already setting up shop inMorocco and creating a live ecosystemthat takes advantage of the country'sstrategic location, Morocco is well-placedas a regional hub.

Said Ibrahimi, chief executive of theMoroccan Financial Board, and keynotespeaker at the seminar, said, "It has beenencouraging to see strong interest fromcompanies in the Arabian Gulf. North andwest Africa has a prosperous future andCasablanca Finance City is well placed tohelp investors to access opportunities in theregion and beyond by acting as a hub city.In investment terms much of this region is uncharted territory and, by providing a gateway,Casablanca Finance City can help investors to participate in Africa's exciting transformation."

Casablanca Finance City is committed to a more collaborative way African countries canwork together to grow sustainably. The financial centre is designed to aggregate opportunity,remove traditional barriers to investment and give investors the economies of scale they needto take full advantage of growth potential in the ‘Greater North West Africa’ (GNWA) region.

Through an ecosystem of international business, financial institutions and professionalservices, Casablanca Finance City keeps dealings with diverse African markets as simple andeconomical as possible, supporting the ambitions of investors and GNWA countries.

Mobile health in Africa & the Middle East (AME) is developing quickly, but there are differencesin drivers and characteristics of the mHealth models employed in each of these areas,according to a report from Pyramid Research (www.pyr.com). ‘Drivers of mHealth Models inAfrica & the Middle East’ examines the MNO-backed mobile health services model in theMiddle East and highlights the best practices that have helped operators in this region expandthe reach of healthcare access. Pyramid Research provides, also, an overview of the mHealthmodel in Africa, supported by two major mHealth services examples that are run inconjunction with mobile network operators. Furthermore, Pyramid analyzes mobile healthservice technology developments made in Africa, assessing how and why innovators andentrepreneurs helped facilitate solutions to pressing needs in healthcare service delivery,pointing out where innovators and entrepreneurs in the Middle East should devote resources.

Business training andtechnology tools

Abu Dhabi-based Invest AD recently obtained a license tooperate within Casablanca Finance City

Joseph Phillips, country manager, AMIDEAST,Morocco (right) and Hassan Bahej, general manager,Cisco Morocco (left) jointly host a press conference tomark the launch of a Cisco Entrepreneur InstituteTraining Center in Morocco


Agenda / NorthCasablanca Finance City attractsinterest from Arabian investors

Monitoring mobile health


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Advanced satellite communicationsequipment manufacturer, WORK

Microwave, has announced that its DVB-S2 IP-Modem SK-IP has been selected byIP connectivity provider, SkyVision, toenable IP trunking services in the NorthAfrica, the Middle East and Asia. UtilisingWORK Microwave’s IP modem SK-IP onSkyVision’s satellite platform, SkyVision isnow able to provide Internet connectivitysolutions with uninterrupted performanceregardless of weather, location, orenvironmental conditions.

“Our satellite platforms provide end-toend IP connectivity as well as an extensivesuite of customised solutions and servicesthat’s available globally,” said Golan Madar,vice president of operations at SkyVision.“For the recent IP trunking project, wespecifically required reliable, proven, andplatform-optimised equipment to ensurethe highest quality of service to ourcustomers. WORK Microwave’s IP-ModemSK-IP, with its advanced features,customisable options, and strong industryreputation proved to be the perfectsolution for optimising powerconsumption, bandwidth andthroughput.”

The WORK Microwave IP-Modem SK-IPfeatures a multichannel ACM system(OptiACM) to support full integration ofACM capabilities in point-to-point andpoint-to-multipoint satellite network links.OptiACM gives users a 30 per centcapacity gain over standard DVB-S linksand can more than double availablethroughput.

UK-based industrial power systems specialist,Centrax Gas Turbines, is to supply the powerfor Tunisian tissue producer, AZUR’s, electricalplant that will supply products throughoutnorthern and central Africa. The deal is worthUS$40.3mn.

Centrax will provide a 501-KB5 gas turbineto provide the reliable, consistent and cost-effective supplies of electricity on which thepurpose-built plant depends. Located inZaghauan, 100km south of Tunis, the plantwill house new papermaking machinerycapable of producing 9,000 tonnes of tissueand hygiene products each year.

The gas-fuelled indoor 501-KB5 packageproduces up to 3.9MW of power and itsexhaust heat is recovered to benefitmanufacturing processes. The Centraxpackage will provide enough power toenable AZUR to supply its large domesticmarket while also exporting 20 per cent ofits products to Algeria and a further 10 percent to Libya.

As the most advanced plant of its kind innorthern Africa, the KB5 package can beupgraded easily to the larger KB7 turbine inthe future, a key factor behind Centrax beingchosen to power the facility.

6

NEWS

Canadian aircraft manufacturer, BombardierAerospace, has announced that it has acquiredland in Morocco for a manufacturing facility to beestablished by next year. The land is situated nearthe airport in Casablanca’s free zone. The companyhas signed a deal with Moroccan property holdingand management company, Midparc InvestmentS.A., for the land in the free zone in Nouaceur.

“The site met our stringent requirements andhigh standards and we look forward to the startof the construction and production of the firstMoroccan-built Bombardier aircraftcomponents,” said Bombardier Aerospacepresident, Guy Hachey.

Limited scope for further increasing mobile penetration amongst Egypt’s 80mn population hasintensified competition in terms of both tariffs and products between Egypt’s three GSMoperators – Vodafone, Mobinil and Etisalat – who may soon be joined by the country’s firstvirtual network operator in the form of Telecom Egypt.

Recent figures from the country’s Ministry of Communications and Information Technology(MCIT) suggesting that there are 91.32mn mobile subscriptions in Egypt, equating to apenetration rate of 112.3 per cent. This high figure reflects the fact that many people have twoor more SIM cards and several telephones, rotating SIMs depending on whom they are calling.

According to a report by the Oxford Business Group, the potential emergence of state-owned,fixed-line operator, Telecom Egypt, as a mobile virtual network operator (MVNO) offeringservices through existing infrastructure, may force greater collaboration on network-sharing.

SkyVision and WORKsign IP trunking deal

The Bombardier Learjet 85

WORK Microwave’s DVB-S2


Agenda / NorthBombardier signs land deal

Telecom Egypt to launch MVNO?

Centrax signs US$40mn Tunisian turbine deal


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S02 ATR July 2012 Agenda 01_Layout 1 20/06/2012 14:24

Toyotsu Auto Mart, a subsidiary ofJapanese company Toyota Tsusho,

has opened a new US$5.8mn multi-operational showroom in Nairobi SouthC suburb to sell pre-owned Toyotavehicles. The company will also sellDaihatsu, Hino and Subaru brands. Affiliated to Toyota Kenya Limited, thecompany will also provide minor andmajor after-sales services for all Toyotamodels after every 5000km travelled.

Apart from enjoying the option ofbuying from a wide variety of pre-ownedor pre-ordered in-house stock units thatmeet specific customer requirements,the company will also assist in re-marketing fleet and individually-ownedToyota vehicles.The showroom will include a large-scaleservicing area run by a service managerin-charge of four technicians, a Toyotaparts shop and shops run by AON Minetfor insurance, Auto Insure for roadregistration, Tsusho Capital for in-housefinancing and Tramigo for vehicletracking devices. The company is also offering a pre-delivery service for the pre-ownedvehicles.

Figures from the Somali business communityhave called for aid organisations to invest inbusiness and infrastructure in Somaliterritories. Businesspeople, British governmentofficials, NGO representatives, and experts onthe region recently gathered in London, in theUK, to discuss development within Somalia.

In response to the London conference, anassembly entitled ‘Somalia: Business as usual?’was hosted by the Royal African Society andintroduced by Britih politician Alun MichaelMP. It offered an alternative debate focusing onhow Somalia's booming business, trade andinvestment activities can be used to help theregion stage its own recovery from the manypolitical and security problems that haveplagued it for more than twenty years.

“Somalia’s future lies in its economy,”Abdirashid Duale, CEO of the Dahabshiilfinancial services and telecommunicationsgroup, said at the meeting. “The lifeblood ofevery Somali is trade, so the most importantthing for the region is for enterprise to flourish.

“Despite problems of security and instability,Somalis have already demonstrated – throughthe successes of key sectors such as livestock,money transfer and, more recently, telecoms –that Somali territories are fertile grounds fortrade and commerce.”

In regions where the political climate isstable, business confidence is strong. Duringthe meeting many commentators expressedthe view that Somaliland’s growing economycan help encourage political stability acrossthe region. Business leaders called for practicalsolutions such as assistance with investmentand job creation as a means to protect andoffer hope to vulnerable Somalis, particularlythe youth.

Duale also called for the internationalcommunity to help unlock the potential ofsocial entrepreneurship in the region, so it canstage its own recovery from issues that haveplagued it for more than 20 years.

“Somalis have high hopes that theinternational community will develop aconcrete plan to improve the region’s future,”said Duale. “The key to unlocking Somalia’spotential is international investment in socialentrepreneurship and education.

“It will help Somalis help themselves byteaching them how to create new businessopportunities, more jobs and a moresustainable economy. These practicalalternatives will protect vulnerable Somalis,particularly younger generations, from thepressure put on them by extremist groupslinked to piracy and terrorism.”

8

NEWS

Kenyan investment firm Centum has posted a 40 per cent drop in profits without issuing theprofit warning required by market rules when full-year profits fall by at least 25 per cent. Therevelation had an instant knock-on effect on the company’s shares.

Companies are required by market regulator Capital Markets Authority to publicly issue aprofit warning if they expect their.

"The company had not issued a profit warning so the results come as a surprise to themarket," Standard Investment Bank said in a note to clients. "Whereas the profitability resultsare disappointing, we think there is significant value yet to be unlocked from the business,embedded in a potentially understated net asset value."

In an interview with Reuters, chief executive, James Mworia, blamed the nature of thebusiness on the lack of a profit warning, saying the management believed they were on trackto achieve a less than 25 percent profit fall, right up to the end of the financial year.

Toyota opens pre-ownedcar showroom in Nairobi

Yoshihiro Goto,MD of ToyatsuAuto Mart


Agenda / EastCentum profit drop shocks Kenyan market

Somali commerce ‘can encouragepolitical stability’


East Africa Irrigation Technology Week isset to take place at the Kenyatta

International Conference Centre from 9-13July in Nairobi, Kenya. Organisers say thatevent is the largest exhibition andconference on irrigation technology andprecision agriculture in East Africa.

As East African countries work towardsimproving food security, irrigation isbecoming important in increasing theamount of land available for cropping. EastAfrica Irrigation Technology Weekspecialises in showcasing irrigationtechnology, including the emerging field ofprecision agriculture. The exhibition ispredicted to attract exhibitors from Africa,the Middle East, Europe, Asia and the USand will be run concurrently with atechnology conference and field visits to liveirrigation technology installations.

Irrigation has a proven potential to boostlevels of agricultural productivity on thecontinent, as well as address the effects ofclimate change. Africa is, however,dramatically underserved in terms ofirrigation. A 2009 research report by theInternational Food Policy Research Institute(IFPRI) states that African countries irrigateonly about six per cent of their collectivecropland, compared with a world average of18 per cent. In sub-Saharan Africa, only fourper cent of farmland is under irrigation.

East Africa Irrigation TechnologyExhibition Week 2012 will showcaseequipment and services from leadingmanufacturers and other service providersto the irrigation and precision agriculturesub-sector.

Two Kenyan firms are set to invest US$930mnin order to generate 457 MW of electricity fromwind and solar power. As the country grappleswith rising power demands, Gitson EnergyLimited plans to spend US$830mn on buildinga 300 MW wind farm and a 50 MW solar plantat Bubisa in Marsabit, Northern Kenya.Additionally, Bluesea Energy Ltd has investedUS$100mn in various projects utilising wind,including a 40 MW farm in Isiolo, 7 MW inBelgut, Rift Valley Province, and 60 MW inLambwe Valley. Gitson plans to use US-backedtechnology for the wind farm and solar plant,and has applied for funding from EximBankand Overseas Private Investment Corporation.Over the last few years, Kenya has beendeveloping other sources of energy away from

unreliable hydro and fossil fuel sources.Bluesea lead engineer Sam Ochieng noted

that projects in Isiolo, Lambwe Valley andBelgut are at various levels of implementation.

Gitson chairman Dr Michael Nderitu hascommented that the company has beennegotiating with the national power utility,Kenya Power, for a power purchase agreement(PPA), which would specify the terms ofinjecting electricity into the national grid.

Gitson’s sites could be linked to the nationalgrid through the planned 1045km, US$1.2bnhigh voltage electricity transmission linkbetween Ethiopia and Kenya, which is due tobe completed in 2016. Valued at US$1.2bn thetransmission link project will connect WelaytaSodo in Ethiopia to Suswa in Naivasha, Kenya.

10

NEWS

Tanzanian sub-contractors are missing out on contracts for major construction projects to largeforeign companies according to industry expert, Godfrey Simbeye. Simbeye, executive directorof the Tanzania Private Sector Foundation, said that the problem lied in unbalanced policies thatengender bias against local contactors. To combat this problem, the foundation is implementingmeasures to empower and facilitate local contractors to undertake major projects.

"Stakeholders in the construction industry are of the opinion that future generations of sub-contractors are slowly being nipped in the bud, thus killing the nascent industry and its future,”Simbeye was quoted as saying by Tanzania Daily News. "The flow of knowledge, as would beexpected, is minimal with these contractors withholding it. Even when the foreign and largelocal contractors employ indigenous Tanzanians, they do not teach them any skills. They keepthem working at the lowest paying jobs, for long hours a day.”

East Africa IrrigationTechnology Week 2012

www.irrigationweek.com


Agenda / EastTanzanian companies ‘overlookedfor construction contracts’

US$930mn to be invested inKenyan renewables

Insurance broking and risk management firm Marsh has completed its acquisition of AlexanderForbes Risk Services’ operations in Uganda. This transaction follows Marsh’s acquisition, earlierthis year, of Alexander Forbes’ South African insurance broking operations, Alexander ForbesRisk Services (AFRS) and ancillary operations, as well as Alexander Forbes’ insurance brokingoperations in Botswana and Namibia.

Brian Blake, Vice Chairman of Marsh Africa, said, ”Uganda’s strong economic growth andrapid development, especially in the mining and energy sectors, increasingly requirescompanies to adopt more advanced risk management practices and insurance solutions tomeet their particular requirements.”

Expanding risk services in Uganda


The World Bank has agreed to provideUS$10mn for project funding in 2012

to the Dar es Salaam Corridor Committee(DCC). The funds will be made availablethrough the Southern Africa Trade Hub(SATH) over the next three to five years,according to a SATH spokesperson.

"In 2012, the World Bank accepted theassessments and project proposals, andagreed to provide US$5mn for capacitybuilding at the DCC Secretariat as well as afurther US$5mn for DCC programmeimplementation for the next three to fiveyears," the spokesperson said.

The funding is expected to enable theDCC to improve the quality of logistics andsupport services along the corridorthereby reducing the costs of trade.

The Dar es Salaam Corridor connects theZambian Copperbelt to the Port of Dar esSalaam in Tanzania. It also carriessignificant cargo to and from theDemocratic Republic of the Congo, Malawiand southern Tanzania. It forms part of theNorth-South Corridor which stretches fromCape Town to Tanzania and is a majorartery used for the US Agency forInternational Development’s (USAID) Feedthe Future initiative.

Transport costs on both rail and roadalong the corridor remain high due tofactors such as the poor quality oftransport infrastructure, ineffectiveness ofcustoms authorities and management ofagencies at border crossings, delays at theport and unnecessary road blocks andchecks along the route.

One of the world’s largest security companies,G4S, has made clear their intention to expandand enhance their already significantoperations in Africa.

Operating in more than 125 countries world-wide, 30 of which are in Africa, G4S hasplanned for its African business to undergo adouble-digit growth over the next two years.Also, during the following 12 months, thecompany intends to expand into three newcountries in the continent.

G4S regional president for Africa Andy Bakerwas recently appointed to the role with the aimof monitoring a programme of aggressive

acquisitive growth across Africa. He noted thatdespite the already significant size and scale ofG4S business in Africa, there are still manyopportunities for greater expansion.

South Africa, G4S's biggest business in Africa,has given the group a good base to work fromas it expands across the continent.

"We have a substantial business in SouthAfrica and some of our other operations in Africadon't have the same type of scale,” said Baker. “Byand large our quality is very comparable acrossthe continent, but where we have centres ofexcellence in South Africa, we use that expertiseto support the rest of the continent.”

12

NEWS

South Africa is not only a competitive mobilemoney market, but is a good representationof the different business models that arebeing represented by banks, mobile networkoperators, third party operators, social mediaand online retailers and payment providers.This is the opinion of Sonum Puri,programme director of Mobile Money Africa,which took place recently in Johannesburg.The event is the largest annual industrygathering on the continent according to theorganisers.

“The event provided the chance to showthat the mobile money ecosystem cangrow to encompass many newstakeholders in the marketplace, which means that people can take lots of examples fromthe South African market and apply them to their own businesses,” said Puri.

South Africa’s status as a dominant regional logistics and infrastructure hub makes it anextremely viable gateway for trade into the rest of Africa according to the organiser of theinaugural BRICS Africa Export Import Forum.

The event will take place from 15-17 July at the Gallagher Convention Centre, Midrand, SouthAfrica. BRICS member nations will form the backbone of the forum, an event designed to keepimporters and exporters abreast of the constantly changing dynamics of international trade.

The three-day forum is designed to maximise multilateral trade activity and includes aprogramme of Intra-BRIC trade opportunity presentations as well as a series of educationalworkshops. It takes place alongside two major shows: Africa’s Big Seven Food and Beveragetrade exhibition, and the Southern African International Trade Exhibition.

SATH provides US$10mnto Dar es Salaam

Mobile Money Africa marked a successful return toJohannesburg

www.satradehub.org


Agenda / SouthMobile Money Africa returns

G4S targets regional growth

South Africa central to BRICS forum


Zanzibar has announced plans to build anew port at Mpiga Nduri in Ungunja to

increase the island’s capacity to handlelarge ships and increased cargo. MalindiPort handles between 140,000 and 160,000tonnes of general cargo annually and about25,000 tonnes of liquid cargo, mainlypetroleum and edible oils. The port is notcurrently able to dock more than threecargo ships at once and does not haveenough container terminals.

The port handles over 90 per cent ofZanzibar’s trade but increased business,prompted by the expansion of the EastAfrican community, has led to demand formore cargo handling facilities across theports in the Indian Ocean. Tanzania isplanning to expand its ports at Dar esSalaam and Mtwara with plans underway tobuild new ones at Mwambani in Tanga andMbengani in Bagamoyo.

Meanwhile, five foreign companies arelooking to invest about US$150mn inTanzania’s Export Processing Zones. Theinvestors from China, India and Japan are inthe process of getting licenses to startproduction. The firms will invest inpetrochemicals, a slaughter house, a meatprocessing factory and in the assembling ofmotor vehicles for exports.

“We expect total sales of aboutUS$11.24mn in the first year of production.The five investors will bring the total ofcompanies in the EPZ to 59 adding aboutUS$710mn in investment”, said LameckBorega, investment facilitation officer at theExport Processing Zones Authority (EPZA).

EPZ data shows that over US$700mnworth of investment has created 14,000direct jobs and made US$450mn in exportssince the zones became operational sixyears ago. EPZA turnover is collected fromapplication fees, renewal fees, developer’slicense fees, office rental fees and servicecharges. The lack of infrastructure forindustrial production and power costs arehampering full development of the EPZs.

Microsoft has appointed local technologydistributor Comztek as its first channeldeveloper partner for cloud services in SouthAfrica, ahead of the commercial launch of itsOffice 365 productivity suite.

Comztek will be tasked with developing achannel of partners who will promoteMicrosoft’s cloud services offerings to themarketplace and will offer a combination ofsales and marketing support, training andtechnical assistance and product specialistexperience of working with Microsoft solutions.

“This is an important step in building astrong partner eco-system across South Africa

to support the roll-out of Office 365,” saidMicrosoft’s distribution account manager,Leane Hannigan. “Although Office 365 is adirect service between an end-user andMicrosoft, we see huge potential for partners toadd layers of value and services on top of thisbasic offering, while being part of the revenuestream of Office 365 itself.”

Hannigan added that the Office 365distribution model offers partners a chance topromote cloud services at no risk tothemselves, while retaining a commissionstream. Rival offerings work on a model wherethe partner becomes liable for the resell licence.

14

NEWS

Global engineering company FLSmidth, JHDA Taggart and primary project sponsor UnitedManganese of Kalahari (UMK), have donated three feeding scheme kitchens to rural schoolsnear UMK’s operations. The objective of the project was to establish kitchen facilities that makeit possible for the more than 1,500 pupils in the three schools to be fed daily from facilities thatensure hygienic conditions for food preparation and allow staff to better execute their dutieswithin a functional facility.

The project was managed by Gundo Engineering & Projects and the beneficiary schools inthe Kuruman area of the Northern Cape were identified with the assistance of the Departmentof Education in the Northern Cape, Kgalagadi District office. They were Lehikeng Intermediary(450 pupils), Maruping Primary (740 pupils) and Mapoteng Primary school (366 pupils). A localBBBEE contractor was contracted to develop the three kitchens and local labour was employed.

The project forms part of UMK’s social responsibility initiative. The kitchen facilities havebeen designed to be self-sustaining, with minimal energy and water usage, ensuring theschools will have to carry the lowest possible cost for their upkeep.

MTN Group and MFS Africa have launched the online money transfer service, MTNMMO.com.The launch means that MTN Mobile Money customers can now receive internationalremittances directly on their mobile phones. The service is now live for transfers to Rwanda andCôte d'Ivoire and will be rolled out across other MTN Mobile Money markets, including Benin,Cameroon and Ghana later this year. Senders can register on the website, www.MTNMMO.com,from anywhere in the world and remit funds by entering a beneficiary's mobile phone number.Funds are then delivered immediately to the beneficiary’s MTN Mobile Money account.

While Mobile Money customers can already send and receive domestic remittances, theMTNMMO.com service opens up MTN Mobile Money to receive international remittancesthrough a fully integrated and secure platform. The MTNMMO.com service is part MTN and MFSAfrica’s drive to introduce simple and relevant financial services.

Zanzibar plans toconstruct new port


Agenda / SouthFLSmidth and UMK sign CSI deal

Microsoft announces Office 365 deal with Comztek

MTN Group launches transfer site


More local development creates far-reaching benefi ts.

At ExxonMobil, we are committed to helping support development

and economic progress wherever we operate.

For example, in Chad, we’ve trained more than 300 small and

medium-sized enterprises to assist in improving business and

operating performance. And in Angola, we have spent over

$1.3 billion with local companies since 2008.

So whether we are working with local suppliers or training Africans

to work in our operations, ExxonMobil is developing more than oil

and gas—we are helping to support Africa’s future.

Learn more about our work at exxonmobil.com


Airtel Chad has collaborated withEcobank to launch Airtel Money in

the West African country. Touted as thefirst mobile commerce product in thecountry, the service will allow subscribersto carry out financial transactions on theirmobile phones and enhance the deliveryof financial services at affordable costs.

The launch ceremony of the newservice was held at the Kempinski Hotelin the capital Ndjamena, in the presenceof various dignitaries, including theprime minister Emmanuel Nadingar,telecommunications minister AlingueJean Bawoyeu, and members of Chad’sdiplomatic corps.

In many developing regions, includingAfrica, the availability of formal financialservices is severely limited and onlyinformal, expensive and unreliablechannels are the only way in which tocarry out transactions. Recent studieshave suggested that the total value ofmobile money transfers in Africa isexpected to exceed US$200bn in 2015due to the growing confidence of users inthe system, coupled with the wide rangeof services on offer.

Major players in the market, especiallybanks and mobile operators, haveexpressed an interest to fill this muchneeded gap. Airtel has been rolling outits m commerce service across Africa tocurrent and potential customers,enabling various modes of financialtransactions on mobile phones.

Transactions will be very simple andcompletely secure. All the customerneeds is a mobile phone and a personalpassword whenever they want tocomplete a transaction. A simpleregistration is sufficient to use theservice. The client must be an Airtelsubscriber, have a valid identificationdocument and fill out a registration form.

Airtel Money will be available in allareas covered by the Airtel network.

Six years after MTN committed overUS$100mn into Africa's largest capacitysubmarine fibre-optic cable, the West AfricaCable System (WACS) has been commerciallylaunched. The ultra high-capacity cable systemlinks Western and Southern Africa to Europe.

The 17,200km fibre-optic submarine cablesystem will effectively raise South Africa'scurrent broadband capacity by more than 500Gigabits per second (Gbps). This will provide amuch-needed boost to MTN in South Africa,where consumer data demand quadrupledduring 2011 and data consumption (excludingSMS) rose by approximately 200 per cent year-on-year. During the same period, smartphoneusage increased by 128 per cent to 3.6mnusers, while data users soared to 10.9mn.

WACS spans the west coast of Africa, startingat Yzerfontein near Cape Town, South Africaand terminating in the UK. The system willenable MTN operations to enjoy seamlessconnectivity into the rest of Europe and theAmericas. The four-fibre pair system wasconstructed at an approximate total projectcost of US$650mn.

“MTN is the largest investor in WACS, withcommitments in excess of US$100mn,comprising US$90mn system capitalcontribution and additional capitalinvestments towards the construction of cablelanding facilities in Cameroon, Ghana, Nigeriaand Cote d'Ivoire,” said MTN's global carrierservices' commercial relations lead for theWACS Consortium, Trevor Martins.

16

NEWS

The Hershey Company has announced a plan to reinforce cocoa sustainability efforts byaccelerating farmer and family development in West Africa, where 70 per cent of the world’scocoa is grown. Over the next five years, Hershey will also expand and accelerate itsprogrammes to improve cocoa communities by investing US$10mn in West Africa.

In 2012, Hershey will expand CocoaLink, a first-of-its kind farmer outreach programme thatuses mobile voice and SMS text messages to connect cocoa farmers with importantinformation about improving farming practices, farm safety, child labour, health, crop diseaseprevention, post-harvest production and crop marketing.

Hershey is also establishing the Hershey Learn to Grow farm programme in Ghana to providelocal farmers with information on best practices in sustainable cocoa farming. For the first time,US consumers will also be able to purchase Hershey’s Bliss® products with 100 per cent cocoafrom Rainforest Alliance Certified farms.

The commercial value of unlicensed software installed on personal computers in Nigeria reachedUS$251mn in 2011, with 82 per cent of software deployed on PCs during the year pirated. This rateremains unchanged from 2010 and stands at almost double the global piracy rate for PC softwareof 42 per cent. These are among the findings of the Business Software Alliance’s (BSA) 2011 GlobalSoftware Piracy Study, which evaluates the level of software piracy around the world. The report’sfindings indicate that current efforts to address the significant negative impact of piracy on theNigerian economy need to be continued and maximised. Since 2003, the piracy rates in thecountry have dropped a total of two per cent, down from 84 per cent in 2004.

The BSA confirmed that there are proven steps that governments around the world can take toeffectively reduce software theft. For more information, go to www.bsa.org/globalstudy

Airtel Chad and Ecobanklaunch Airtel Money


Agenda / WestHershey reveals sustainability plans

MTN heralds West Africa Cable System launch

Nigeria’s software piracy rate static


The second Logistics West Africa strategic conference andexhibition will take place at the Eko International Expo Centre

on Victoria Island, Lagos, Nigeria, on November 5-7, 2012. “Logistics West Africa is a platform for sharing innovative

solutions and practices so companies can improve logistics, savetime, save money and increase their profit. Therefore,encouraging West African companies to be more competitiveand grow in the vibrant West African regional marketplace,” saidthe event’s producer, Natalie Bacon.

Logistics West Africa has been designed as a unique pan-regional event to bring together senior supply chain decisionmakers from across the region to debate challenges and discussand share their experiences of their logistics supply chain inWest Africa.

Valentine Rugwabiza, deputy director-general of the WorldTrade Organisation (WTO) recently commented that it remainscostly to trade with another African country. West Africancountries therefore trade with international partners who areusually further away, but are more competitive.

The Logistics West Africa Strategic Summit and Exhibition willbring together the major industry stakeholders from oil and gas,manufacturing, fast-moving consumer goods, construction,pharmaceuticals, mining and agriculture with pan-West Africantrade bodies, government ministries and solution providers. Thesummit will highlight and identify some of the major logisticalchallenges in the region and focus on implementing thesolutions needed by private industry for business to excel. Byimproving all aspects of logistics in the region the event aims tokeep West Africa moving and emerging as one of the world’slargest regional trade hubs.

The strategic two-day conference will provide the idealopportunity for discussion forums to solve topical industrychallenges and fast track understanding of how to improvelogistics supply chain management.

For more information on Logistics West Africa please visit:www.cwc-logistics.com

18

NEWS

According to the 2012 DoingBusiness Report, published bythe World Bank Group, CapeVerde has made anenormous contribution tothe positive image of WestAfrica over recent years. Thisis largely due to stronggrowth in the islands’ tourismsector. Specialist Cape Verde property agents, Feltrim International, havebeen keeping a close eye on the destination’s progress.“In 2011 in excess of 475,000 tourists visited Cape Verde, only about100,000 shy of its native population, and by 2015 one million arrivals areenvisaged,” said managing director of Feltrim International, AdamCornwell.”The Doing Business Report credited Cape Verde with reinforcing apositive image by adding a dynamic to the tourism sector and sparkingstrong growth.

Logistics West Africa 2012exhibition announced

Cape Verde (image source: IDS.Photos)

Logistics West Africa is a platform for sharing innovative

solutions and practices socompanies can improve logistics,

save time, save money and increase their profit


Agenda / WestCape Verde ‘reinforcespositive image’


20

NEWS

August15-16AITEC West Africa ICT SummitAccra, Ghanawww.aitecafrica.com

15-18EcoAfribuildJohannesburg, South Africawww.ecoafribuild.co.za

15-18InterBuild AfricaJohannesburg, South Africawww.interbuildafrica.co.za

22-24Sign AfricaJohannesburg, South Africawww.signafricaexpo.com

September6-7Intermodal AfricaDurban, South Africawww.transportevents.com

18-19Nigeria ComLagos, Nigerianigeria.comworldseries.com

18-20Power NigeriaAbuja, Nigeriawww.power-nigeria.com

19-20AITEC Mozambique ICT CongressMaputo, Mozambiquewww.aitecafrica.com

October3-7Sudan BuildKhatoum, Sudanwww.sudanbuild.com

17-20elec expo & EneRCasablanca, Moroccowww.elec-expo.com

23-25Africa ElectricityJohannesburg, South Africawww.africaelectricity.com

24-25AidExBrussels, Belgiumwww.aid-expo.com

Events / 2012


An African Trade Insurance Agency (ATI) report, titled The State ofAfrica’s Risk Profile, and based on discussions held during ATI’s thirdannual Roundtable on the Impact of Political and Trade Credit Risks onAfrica’s Trade and Investments, highlights the importance ofaddressing the concerns of a surging youth population, which nowplaces Africa as one of the youngest continents on the planet.Convened by ATI, the event is a platform for African countries to beginmanaging and creating a more accurate risk profile that better reflectsthe progress and development found in many African countries.

Adding his voice to the high-level participants quoted in the report,Peter Kenneth, Kenya’s Assistant Minister of Planning, NationalDevelopment and Vision 2030, reflected on the role of African leadersin improving the current business climate - “In a word, the politicalrisks of the past have largely subsided. Furthermore, there is clearevidence that African leaders and regional institutions intend to keepthings that way.” He went on to cite as an example of Africa’s commitment to stability,the political successions in Malawi and Senegal, and the recent coup

d’état in Mali, where ECOWAS countriesmoved fast to impose sanctions thateventually forced the army to retreat.During the all-day forum, expert panelsdiscussed the impact of the shiftingdemographics, on Africa’s risk profile inaddition to two other key issues: Theimpact and potential of economic,political and social contagion from theArab Spring in Sub-Saharan Africa(SSA); and The impact of the Euro zonecrisis on economies in Sub-SaharanAfrica (SSA). The findings andrecommendations from thesedeliberations were captured in thefinal report.

Reporting on the state of Africa's risk profile

The ATI Roundtable panel, seated from L-R; Martin Schmerbach, Economic Research,Euler Hermes Kreditversicherungs-AG; Anne Aliker, Head of Investment Banking, CFC Stanbic Bank; Felix Adahi Bikpo, Chief Executive Officer, African Guarantee Fund

Peter Kenneth, Kenya’s AssistantMinister of Planning, NationalDevelopment and Vision 2030


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S05 ATR July 2012 Bulletin_Layout 1 21/06/2012 11:14

22

NEWS

Bulletin / DevelopmentSeeking inventions to make adifference to developmentAn Aid Innovation Challenge forms part of

the annual AidEx event (www.aid-

expo.com) which serves as a platform for

humanitarian and development aid

professionals to facilitate improvements in

the delivery of humanitarian aid, taking

place in Brussels, Belgium, on 24-25

October 2012; Nicholas Rutherford, AidEx

Event Director, said, “We want to hear from

people with cutting-edge inventions that

will boost the delivery of aid in areas such

as medical care, water, sanitation, food,

security or shelter.”

Helping the Maldive Islandsmeet renewable energy goals

Kyocera Corporation, Toyota Tsusho

Corporation and Wakachiku Construction Co.,

Ltd. are working to install 675kW of Kyocera's

solar power generating systems at schools

and other public facilities in the island nation

of the Republic of Maldives; the Project for

Clean Energy Promotion in Malé is being

funded by the Japanese government's Official

Development Assistance (ODA) - provided

through the Japan International Cooperation

Agency (JICA) and the Japan International

urging states to ensure sustainable land

management, Ban Ki-moon said, “Important

land-use decisions need to be made, as well

as critical investments ranging from extension

services for small farmers to the latest

technology to support environmentally

sustainable mass food production.”

Website tracks commitments toMillennium Development GoalsA website has been launched to track

progress on financial and policy

commitments made at international forums

and elsewhere towards the achievement of

the Millennium Development Goals (MDGs);

the website, http://iif.un.org, known as the

Integrated Implementation Framework (IIF),

is an interactive web portal that will provide

an overview of all international

commitments made in direct support of the

MDGs since 2000, providing information on

the nature of these commitments, tracking

their delivery, signalling prevailing gaps,

demonstrating inconsistencies and

identifying gaps between the support

provided and the support that is required for

achieving the MDGs, enhancing

accountability and helping make the global

partnership more effective.

Cooperation System (JICS) - to promote the

utilisation of solar energy as an alternate and

renewable energy resource and to undertake

measures against climate change.

Social entrepreneurs seek fundsto deliver clean energy access20 off-grid clean energy entrepreneurs have

sent a letter to World Bank Group president

Robert Zoellick requesting US$500mn in

financial commitments to help them deliver

on the world’s energy access goals; the letter

states in part, “We work in these markets and

we know they suffer from, among other

things, a distinct lack of access to finance” -

and goes on to argue that a significant

investment in the sector from the World

Bank Group can reduce perceived risk and

unlock private sector investment, and along

with it the vast potential of clean energy to

serve the world’s poor.

How Eight19 is now working Global LEAP Active supporters of the United Nation’s

Sustainable Energy for All initiative launched

in 2012, Eight19 has joined the Global

Lighting and Energy Access Partnership

(Global LEAP), a senior forum that brings

together governments, the private sector and

development partners to share knowledge

and best practices under a set of commonly

held principles to encourage self-sustaining

commercial markets for energy access

solutions; as a member, Eight19 shares the

commitment of the Global LEAP principles to

accelerate self-sustaining commercial markets

for energy access solutions.

States urged to ensuresustainable land management “Without healthy soil, life on Earth is

unsustainable,” said UN Secretary-General Ban

Ki-moon on the World Day to Combat

Desertification, observed 17 June 2012;

100kW Kyocera solar power generating system at theMaldives Center for Social Education

iif.un.org



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24

NEWS

Bulletin / EnergyRemote microgrids to help meet energy demand Demand for energy, especially electricity, is

growing much more rapidly in Africa than the

rate of expansion of conventional electricity

grids in the major industrialised world, and -

according to a report titled ‘Remote

Microgrids’ from Pike Research - remote

microgrids are ideally suited to help meet this

surging appetite for more power, without

increasing carbon emissions; a widening

recognition of the contribution renewable

energy makes to rural development, lower

health costs (linked to air pollution), energy

independence, and climate change

mitigation is shifting renewable energy from

the fringe to the mainstream of sustainable

economics - remote microgrids can serve as

the anchors of new, appropriate scale

infrastructure, a shift to smarter ways to

deliver humanitarian services to the poor,”

says senior analyst Peter Asmus.

Investing in solar equipment manufacturingEnergy technology and power electronics

specialist AEG Power Solutions has made a

significant investment in South Africa with the

construction of a premium manufacturing

Marthinusen & Coutts at Katanga Mine in the

DRC - the third purpose-built motor

manufactured by Marthinusen & Coutts for

installation at this mine, the other two being

1750HP motors driving mills; Henk de Swardt,

engineering director at Marthinusen & Coutts,

says that one of the major challenges was

coping with the lack of information about the

load that these motors drive, as “both motors

were estimated to be more than 40 years old”.

facility for its utility-scale solar inverters and

skytron combiner boxes for its monitoring and

control solutions; the factory, which is based

in Montague Park in Milnerton, just outside of

Cape Town, has the capacity to produce at

least 200 MW per annum.

Advanced data collection in AlgeriaItron, Inc. has signed a contract with ENAMC -

a subsidiary of Sonelgaz, Algeria’s national

electricity and gas company - to deploy the

large-scale, C&I advanced data collection

system to support the modernisation of the

nation’s electricity network and enable

commercial and industrial clients to improve

management of their electricity

consumption; ENAMC will use Itron smart

metering technology at 58 distribution

centres across the country, and each centre

will be equipped with the IT servers required

to run Itron’s data collection system.

Firms work to meet Nigerian power demands Wood Group GTS has secured a contract with

Leventis Overseas Limited for the supply of

three refurbished Nomad 5 power packages

for use in Nigeria; the contract, which has a

value in excess of US$3mn, involves

procurement and refurbishment of each

power pack, encompassing overhaul of the

TB5000 gas turbines, testing of auxiliary

equipment and installation of modern PLC-

based control systems to ensure reliable

operation in service, follows previous contracts

for the supply of equipment and maintenance

services to Leventis, and will help to meet

demand for additional power at two of their

glass bottle manufacturing plants in Nigeria.

Replacing motors at DRC copper mineA purpose-manufactured 2,210kW motor has

been installed and commissioned byTrevor De Vries, Managing Director of 3WPower/ AEGPower Solutions in South Africa, in the new facility

The age of this motor was contributing to highmaintenance, frequent failures and associated repaircosts at the mine.


One of three purpose manufactured motors whichMarthinusen & Coutts built for Katanga Mining.

This 2210 kW purpose manufactured motor includesseveral design changes to ensure optimum performance.


26

NEWS

Bulletin / TradeValue-added events toenhance AB7 & SAITEX exposTwo of South Africa’s biggest trade events

taking place 15-17 July - Africa’s Big Seven

(AB7) and the Southern African

International Trade Exhibition (SAITEX) -

benefit from the inclusion of the inaugural

Retail Solutions Africa Conference and the

On-line Retailing Conference at AB7, and

the ‘Future of Trade Africa 2012’ at SAITEX;

organised by Exhibition Management

Services (www.exhibitionsafrica.com),

Africa’s Big Seven is the biggest food and

beverage trade exhibition on the African

continent, covering the entire gamut of the

food and beverage business, from farm to

shelf and everything in between, whereas

SAITEX is a full-spectrum trade show with

product categories from A to Z.

Acting to curb fake goods trade South Africa has implemented The Counterfeit

Goods Act, No 37 of 1997 (“the CGA”) in order

to stem the tide of goods being counterfeited,

enabling the owners of intellectual property

to take action against infringers copying their

intellectual property and to institute civil and

criminal proceedings against the

counterfeiters; according to Chris de Beer, a

director at Garlicke & Bousfield Inc, and

Irshaad Moidheen, a Senior Associate in the

Commercial Department at Garlicke &

Bousfield Inc, the CGA enables the owners of

intellectual property to take action against

infringers copying their intellectual property

and to institute civil and criminal proceedings

explores the critical uncertainties

underlying the future international roles of

the euro, the dollar and the yuan – the

world's three major currencies – and posits

three scenarios for the international

monetary system in 2030 based on policy

choices in each currency area.

Food trade grows between the Middle East and Africa “Africa is becoming a major new emerging

market to the rest of the world due to its

strong economic growth and rapidly

expanding population of middle class

consumers,” declares John Thomson,

Managing Director of Exhibition

Management Services, organiser of Africa’s

Big Seven (AB7), which this year includes

the DHL BRICS Africa Export Import Forum,

development briefing dedicated to

showcasing the range of services and

support available for BRICS intra-Africa

trade; “The 15 member states of the

Southern African Development Community

(SADC) have a population of 257mn people

and they buy US$11bn in food imports

every year,” adds Saed Al Awadi, Chief

Executive Officer of Dubai Exports.

against the counterfeiters - and, with

counterfeiting defined as the manufacturing,

producing or making, without the authority of

the owner, of any intellectual property right

subsisting in the Republic, whether in the

Republic or elsewhere, of any goods whereby

those protected goods are imitated in such a

manner, and to such an extent, that those

goods are substantially identical copies of the

protected goods; the Act’s scope is wide

enough to encapsulate a direct infringement

of a protected good as well as a confusingly

similar imitation of the protected goods.

Report indicates monetarystability as key to growthA World Economic Forum report examines

key challenges for the euro, dollar and yuan

and their implications for global growth,

investment and business environments,

indicating that international monetary

stability is at risk due to uncertain future

international roles of these currencies, while

policy choices within each currency area

could radically alter global patterns of trade

and capital movement; ‘The full Euro, Dollar,

Yuan Uncertainties: Scenarios on the Future

of the International Monetary System’ report

Irshaad Moidheen, a Senior Associatein the Commercial Department atGarlicke & Bousfield Inc


The South AfricanInternational Trade

Exhibition and Africa'sBig Seven exhibitions are

powerful gateways toAfrican trade


27

Media and technology leadersgather to discuss the futureAhead of Rio+20, the United Nations

Conference on Sustainable Development,

Rio+Social catalysed an online conversation

among corporate and digital media leaders,

civil society, celebrities and government

representatives to share solutions for pressing

global challenges such as access to energy,

affordable health care, a clean and safe

environment, and education; the United

Nations Foundation, Mashable, 92nd Street Y,

Ericsson, Energias de Portugal (EDP), LiveAD,

Planeta Sustentável, Virgin Unite and United

Postcode Lotteries convened individuals from

all walks of life and countries around the

world both in person and online through

Rio+Social - a global event on the nexus of

social media, technology and sustainability.

gaming, delivering a premium high-

definition entertainment experience; with

the My Net family of products, WD brings to

market FasTrack technology that instantly

detects entertainment traffic on the network

and fast-forwards it to gaming consoles,

media players, smart TVs, tablets,

smartphones, computers and other Wi-Fi

connected devices.

Microsoft seeks to establish itsposition in the tablet spaceWith its plans for the ‘Surface’ range of mobile

tablets, to be released later this year.,

Microsoft brings innovations to the tablet

market, including an interesting “touch”

keyboard; Frost & Sullivan Analyst Craig

Cartier comments, “With the might (and

investment potential) of Microsoft behind its

efforts in the tablet space, Microsoft can

certainly carve out a niche in the tablet

market, but current trends suggest this is not

a place they will reach quickly or easily.”

A new era of high definitionentertainmentWestern Digital has unveiled a line of wireless

home networking products, designed

specifically to accelerate movies, video and

Bulletin / TechnologyNEWS


Microsoft has long pursued a stronger position in themobile industry


28

NEWS

Bulletin / TechnologyResearch firm expands acrossNigeria and KenyaAs part of a planned geographical expansion,

3M is setting up subsidiaries in Nigeria and

Kenya while deploying expert front end

human resources to manage key market

segments and end users in the West and East

African countries - with the Kenyan

operations encompassing neighboring

countries including Tanzania, Uganda and

Ethiopia; commenting on 3M MEA’s

expansion across Africa, Irfan Malik, Area Vice

President 3M Middle East & Africa, said, “3M

expansion across new geographies in Africa

is driven by our underlying strategy to

enhance our penetration in emerging

markets by increasing customer relevance

with the aid of our proven global technology

platforms and prioritising focus on key

Atlas Copco's underground 'app'

With the growing use of smart phones, tablets

and other hand-held devices, Atlas Copco has

developed application ('app') technology to

give its customers quick and easy access to

information, beginning with the company’s

Underground Rock Excavation division; by

downloading its app free of charge, users can

get extensive access to the company’s wide

range of underground face drilling rigs,

loaders, trucks and other equipment.

industries that are expected to grow multi

fold in the coming years.”

Irfan Malik, Area Vice President, 3M Middle East & Africa


The app is available from the Apple App Storeand from Google Play


Grid electricity is not available in many rural areas of Ghana, andeven where the grid exists the supply is unreliable becausegenerating capacity is inadequate. Deng supplies standalone

photovoltaic (PV) systems in rural areas for lighting and appliances inhomes, schools and healthcare centres, and grid-backup PV systemsaround Accra.

A critical solution for solar powerA reliable power supply is critical for businesses. But it’s also vital foreducation and health. Children cannot learn and health centrescannot heal without good light and power. In Ghana, 40 per cent ofthe population aren’t connected to the mains power supply, and it isnot reliable even for those who are.

Deng’s solution is solar power. The company sells a range ofphotovoltaic (PV) systems, starting with a standalone version for thehome costing US$500 and larger versions for schools and hospitalscosting up to US$1,500. Customers pay in installments and areimmediately saving on the kerosene they used previously.

The success of the work depended on more than design andmanufacture. As so often, it is the human infrastructure that is vital.The systems are only so good as there are local people to promote,install and maintain them. So Deng set up a training centre for bothdesigners and installers.

More children can read at home and in schools and more reliablelocal health centres reduce the need for people to travel longdistances for medical support. And it isn’t just the young who benefit.

An 84 year-old retired driver from Nkhoranza, Mr Kwasi Affa, has saidof the benefits of the solar lighting, “I like having the light to read inthe evenings – there are so many books that I want to read.”

Social benefitsEducation has benefited from the use of solar PV lighting in Ghana.Children have good quality dependable light at home so they canstudy in the evening. Both adults and children are making use ofhundreds of schools that have been equipped with 80 Wp PV systemsso that they can remain open in the evening for classes andhomework sessions.

GHANACommerce

29

Supporting work withphotovoltaic systemsAshden Award winner Deng continues to commit to improvement of PVtraining and the provision of reliable PV services

Deng dealer Arthur Manu stands outsidehis shop in Nkhoranza, Ghana


S06 ATR July 2012 Report D 1_Layout 1 20/06/2012 15:14

CommerceGHANA

30

Healthcare also benefits, through theprovision of lanterns to traditional birthattendants, and also through PV systems inhospitals and clinics. These are used forlighting, but also for refrigeration of vaccinesand insulin, and for providing a reliablewater supply. Improving the lighting andfacilities in rural clinics is making healthcaremore accessible for people, as they nolonger have to travel into town fortreatment. PV systems in health centres areno use if they break down, and Deng hassupported the installation programme byrunning courses for health servicetechnicians at the training centre.

Economic and employment benefitsThe PV work of Deng has directly providedemployment to about 11 people, includingtechnicians at Deng head office and the Dengdealers. The dealers supply PV systems andtwo of them run battery charging stations aswell. A 200 W system can charge fourbatteries per day, to bring in a daily incomeestimated to repay the capital cost of thesystem in about three years. This forms agood basis on which to grow a PV installationbusiness. The use of PV for lighting hasextended working hours for shops and othersmall businesses.

In the commercial arena, businesses andpublic organisations using solar PV for gridbackup can continue working during powercuts and voltage variations.

Although more expensive, PV is preferredto diesel generators for back-up powerbecause it is silent.

Training for growthThe continued lack of adequate grid capacityin Ghana will probably result in sustaineddemand for solar PV equipment. The peoplewho would benefit most from PV services are

in the more remote parts of the country, andDeng is growing its network of dealers inthese areas. Founded by Deng in 2005 butnow operating as a separate company, theDeng Solar Training Centre (DSTC Ltd)provides solar PV training and generalbusiness training to dealers, as well as basiccommunity awareness training, and hasdeveloped a chain of trained solar dealerscovering rural districts under the auspices of aWorld Bank-funded solar project. The trainingitself covers the installation and maintenanceof solar PV, to ensure good quality systemsand service.

DSTC was established in technicalcollaboration with: Global Sustainable EnergySolutions (GSES) of Australia, and theDepartment of Mechanical Engineering andAgriculture of Kwame Nkrumah University ofScience and Technology (KNUST) in Kumasi.Initial co-financing was secured fromDeutsche Investitions-und

Entwicklungsgesellschaft mbH Germany(DEG).

DSTC’s training is available to allstakeholders within the solar industry,including private companies and individuals,Government institutions, NGOs as well as tostudents from the KNUST and thePolytechnics. The sustainability of the TrainingCentre has been ensured by the MasterTrainer who has simultaneously trained threelocal trainers to be responsible for thetraining programme.

Technical training consists of both classroom courses and practical training, whichincludes a demo installation. The courses endwith an examination after which Certificatesare issued to successful students in threecategories: pass; pass with credit; and passwith distinction.

Under the training programme, DSTCorganises Solar Awareness Workshops atselected Rural Townships. ■

I have a cousin and his children used to

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a PV system instead. Nowthey can only use thelights for a few hours

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A class at the Deng Solar Training Centre


Leading figures from Africa’s financialservices industry, including those fromthe African Development Bank (AfDB),

believe remittances can play a crucial role infostering social development and increasingfinancial stability in developing countries.

AfDB hosted a conference in Arusha,Tanzania, in May 2012 to discuss how efficientfinancial markets and access to finance canaid economic development. Speakers at theconference - a side event held during the2012 Annual Meetings of the Boards ofGovernors of the African Development BankGroup - included Agnes Soucat, Director,African Development Bank and AbdirashidDuale, CEO of Dahabshiil.

Speaking at the event, Mr Duale praisedthe significant progress being made toimprove access to finance and aid economicgrowth in developing countries. He stressedthe comparative stability of large areas of theSomali territories - citing growth inbusinesses and industries as well as improvededucation and employment prospects.Discussing the role of microfinance incombating poverty, he acknowledged itsearly promise, stating the growth of a formalfinancial infrastructure will enable sustainablefinancial products to be developed to meetthe needs of poor communities mosteffectively.

An international agenda for inclusionAbdirashid Duale said, “Financial inclusion isincreasingly on the international agenda forpolicymakers.

“Significant steps are being taken and thenew regulatory frameworks currentlyevolving will ensure even greater efficiency inresource mobilisation for both inward anddomestic investment. Microfinance initiativesand institutions are already enabling some ofAfrica’s poorest to plan for the future and tobe more resilient to economic, political andclimatic shocks.”

Agnes Soucat said, “Access to finance is akey component of our new Human CapitalDevelopment Strategy. Increasingopportunities for the poor and marginalized -and particularly for the African youth - iscrucial in order to ensure social inclusion aswell as job creating growth. Companies suchas Dahabshiil provide a vital service byfacilitating the transfer of remittances tooften excluded communities.”

The economic crisis did not have as heavyan impact on African countries as it did ontheir global counterparts. Many of Africa’s 48economies are recovering at a faster rate thanthe rest of the world, with 4.5 per cent growthexpected this year, and 4.8 per cent growthprojected for 2013 according to a reportdrawn up by AfDB, the Organisation forEconomic Cooperation and Development

(OECD), the United Nations' EconomicCommission for Africa (ECA) and the UNdevelopment agency (UNDP). In addition,Africa is increasingly attracting investmentopportunities as a result of improvedmanagement of public finances.

Africa’s recent surge can be traced to arange of factors including remittances sentback to Africa from migrant workers. Fundsremitted to Africa by its global diaspora playan important role in national economies,providing a supplementary source of incomewhich boosts private sector growth.Dahabshiil sends approximately $1bn back toAfrica every year, and is the largest of theinternational payments firms established inAfrica.

Globally, money sent home by migrantsconstitutes the second largest financial inflowto developing countries - a vital source ofincome that outweighs donor aid. Remittanceincome is particularly important forcommunities in more remote regions ofAfrica, and helps to bolster the funding ofhumanitarian organisations operating inthose locations.

Mr Duale added, “Africa’s diaspora sendsaround $40bn back home annually, andremittances are an essential lifeline for manycommunities across the continent. There is nodoubt that this inflow has been an importantfactor in Africa’s economic development.”

Handling international money transfers ofunder $200 on average, Dahabshiil is in effecta provider of micro-remittances. Remittancesare acknowledged to be an indispensablesource of income for developing countriesaround the world, fuelling long term growththrough sustained investment. Initiatives toimprove access to finance for poorcommunities are increasingly at the forefrontof international policy, and Dahabshiil is nowlooking to partner with leading internationalNGOs - to expand its offer to include othermicrofinance products. ■

InvestmentFINANCE

32

How access tofunds aids growthAfrican financial experts affirm that remittances can support the adoptionof social inclusion

Abdirashid Duale,CEO of Dahabshiil



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When Anesu Machaba launchedprivate pan-African investment firm,Elah Capital, she hoped to inspire

business innovation, and contribute to theeconomic and social development of Africa.Today, her firm focuses on investments inmining, real estate, construction andagribusiness. They also act as an advisor togovernments for developing economicturnaround plans and SMEs (Small andMedium Enterprises), managing resources, andraising FDIs. The firm is currently looking toraise a pan-African fund focusing on hotelsand commercial real estate.

Anesu says that the inspiration for hercompany’s name came from the ‘Valley ofElah’ where, according to Biblical history,David slew Goliath. For Elah Capital which hashad to battle many odds, the analogyresonates strongly.

“We’re the new kid on the block,” says Anesu.“We work with very few resources comparedto the bigger investors, including internationalfirms. And being an African company, we’reoften seen as the lesser of the two players.”

In a sense, Elah Capital’s story – and byassociation, the David-Goliath story – is Africa’sstory. Like David, Africa was once perceived asweaker and ‘lesser’ than other economies. Buttoday, it is rapidly overtaking the Goliaths ofthe developed world to become one of thefastest growing economies and most preferredinvestment destinations.

Spotlight: AfricaWith 60 per cent of the world’s arable land, 15per cent of its population, 10 per cent of its oilreserves and 40 per cent of its gold, Africaoffers tremendous investment potential. Itspolitical stability and regulatory laws, whichhad previously deterred investors, havesignificantly improved. Meanwhile, thecontinent’s burgeoning middle class andincreasing income have spurred interest inconsumer-facing businesses. McKinseyestimates that by 2020, Africa’s consumer

spending will be US$1.4 trillion. The continent’s economy is also flourishing.

GDP growth in sub-Saharan Africa is expectedto average 5.6 per cent in 2013 – significantlyhigher than the 2.4 per cent expected in theUS and 1.1 per cent expected in the Euro Area.In fact countries like Nigeria and Angola areprojected to exceed seven per cent GDPgrowth. These prospects make Africaextremely attractive to investors.

Prime investment regions and sectorsSouth Africa is by far the most investment-friendly country given its extensivedevelopment and multiple investmentopportunities. But other African countries arefast catching up. Kenya, for instance, offers ahighly entrepreneurial environment with well-developed and efficient regulatory andsupport systems. Nigeria, with its largepopulation, offers a good consumer marketwhile Botswana has a limited population but isrich in natural resources. Egypt and Tunisia arealso on investors’ radars. But the country toreally watch out for is Ghana which emergedas the world’s fastest growing economy in

2011, buoyed by vast oil reserves and goodgovernment policies.

From a sector-perspective, mining attractssome of the most substantial investments asAfrica produces several of the world’s mostimportant minerals and metals, includingGold, Diamonds, Uranium, Chromium, Nickel,Bauxite and Cobalt.

Agribusiness is another importantinvestment area – and for good reason. In acontinent with large swathes of arable land, agood climate and plenty of skilled labour,agribusiness offers the potential to not onlyboost the country’s GDP but raise millions ofAfricans out of poverty.

Significant investment potential is alsoavailable in the real estate and constructionsectors, especially in hotels, shopping mallsand tourist facilities (thanks to the rise inAfrican tourism), and middle and low incomehousing. In Kenya, an ambitious $5bn projectis under way to construct a new city (Tatu City)outside Nairobi that will house 62,000 peopleover 2,500 acres. Airports, roads, railways,communication networks and otherinfrastructure are also under construction. It isestimated that nearly $500bn is needed overthe next decade to meet the continent’sinfrastructure needs. ■

InvestmentFINANCE

34

Offering capitalfor developmentCould local private equity funds be the key to increasing investment acrossthe continent?

Anesu Machaba, Executive Chairman at Elah Capital


Why private equityinvestments matterClearly, African governments alone cannotshoulder the colossal investments neededby the continent. One way of overcomingthis challenge is to encourage PrivateEquity (PE) investors who can offersubstantial capital for development,improve employment and help stimulateemerging markets. Considering that PEfirms are focused on creating better exitvalues, they will help ensure goodbusiness governance. All these factors arecritical in increasing economic growth andreducing poverty.


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Ecobank Zambia has launched a mobilemoney product in partnership withtelecommunciations firm Airtel, with aview to bring unbanked citizens into theformal banking sector. According to thefinancial institution’s managing directorCharity Lumpa, the bank is committed tokeeping with the pace of the rapidtechnological changes affecting its

business and clients in ensuring that itsatisfied its customers’ needs.

“Our goal is to use these emergingtechnologies to not only deliverunprecedented levels of convenience,security and value for money for ourcustomers but to also ensure the activeinclusion of the non-banked and under-banked citizens of Zambia to the formal

banking system,” Lumpa enthused. LusakaProvince permanent secretary StephenMwansa has said the launch of theEcobank mobile money will ensure thatthe bank provides an efficient and cost-effective banking and alternative paymentchannel that is accessible and convenient.

Nawa Mutumweno

First National Bank (FNB) Botswana is oneof the leading financial institutions inthe country and is part of the prominent

First National Bank group. As a financial entitythat operates across countries andcontinents, the company needs to complywith a multitude of regulations andgovernance practices both locally andinternationally. In an effort to improve ITgovernance and align with the principles ofIT, FNB Botswana called upon Marval SouthAfrica to assist with training and ITIL processdevelopment.

Since a large proportion of FNB’s businessrelies on the availability of IT infrastructureand service, downtime can be costly in termsof the impact on the bank’s customers andthe loss of income it incurs.

“IT Service Management is an importantaspect of our business, and we are movingtowards a more proactive approach when itcomes to assisting our customers. In order todo this, we needed to gain an in depthunderstanding of the environment andeverything this IT environment entails,” saysGaogakwe Mokobi, Head of the TechnologyServices Division at FNB Botswana.

“Our biggest challenge was theunstructured and very reactive nature of ourIT environment to faults that occur. Problemresolution was slow, which ultimately endedup causing downtime and loss of productivityand income. We realised that managing this

more effectively would improve efficiencies aswell as profitability, so we embarked upon ITILtraining. We then engaged the services ofMarval South Africa to assess our environmentand assist the team with development ofprocesses in line with the best practiceguidelines outlined by ITIL,” he adds.

Achieving an understanding, to set policyAfter an initial assessment of FNB’senvironment, Marval SA recommendedchanges, which were implemented over thefollowing six months. Training was conductedwith key FNB staff members on ITILFoundation, and the team from Marvalworked closely with FNB to define ITILprocesses specific to the bankingorganisation. Process owners were trainedand coached on their roles andresponsibilities, inputs and outputs to ensuretheir understanding and buy-in, and a sessionwas held for collaboration between theprocess owners to enable them to shareknowledge and gain a broaderunderstanding of the new processes acrossthe board.

“With Marval’s help we established a policythat documents and guides risk and changemanagement within our IT department.Documenting processes is critical for auditpurposes, and ITIL has been instrumental inassisting us in this regard. We have alreadyrealised the benefits of this with improved

problem management and changemanagement, and as this is an on-goingproject we expect to realise more benefits inthe future,” Mokobi says.

By implementing the appropriate ITILpractices in line with bank processes, FNBBotswana will not only be able to more easilycomply with legislation and governance, thebank will also ensure that processes are putinto place to quickly address IT faults andfailures, improving turnaround time forproblem resolution. They will also be able tobenefit from improved efficiency and controlsaround risk management, continuity andcontinual improvement of IT service delivery.

“Skills transfer is also an important part of thecoaching and IT Service Managementoptimisation programme. This ensures thatcontinual service improvement can take placeindependently of a consultant. As a result,emphasis is placed on training and providingon-going support as changes andimprovements take place,” says Edward Carbutt,Executive Director at Marval South Africa.

“As part of our scope, we helped FNBBotswana not only to adopt and implementthe appropriate ITIL processes for theirbusiness, but also to do this in an ISO 200000compliant manner. This will stand thecompany in good stead should they wish toachieve this formal ISO accreditation in thefuture,” he concludes. ■

BankingFINANCE

36

How Botswananfinanciers improved ITInitiatives in the application of information technology at FNB Botswana,with support for training and process development from Marval SA


Ecobank Zambia launches mobile money


38 African Review of Business and Technology - July 2012

Although it still has far to go,deployment of information andcommunication technologies across

Sub-Saharan Africa has moved significantlyforward over the past decade. There hasbeen rapid expansion of mobilecommunications networks and the marketsthese serve following liberalisation andderegulation in key African nations. Mobilenetwork operators such as Zain, Safaricom,Vodacom and MTN, for example, dominatevarious African markets, mostly throughgrowth in pre-paid connections.

Whilst growth has been impressive in allregions of Africa, it is much more commonfor people in urban areas in to have amobile phone, much less so for people inrural areas. If rural people reside in an areawith network coverage and can afford aphone, he or she may have one - but it maybe more likely that he or she has access tosomeone else’s phone, and hence has ashared phone arrangement, with orwithout an individual subscriber card, alsoknown as a subscriber identity module(SIM). It is on these mobile networks thatmobile banking (m-banking) services canserve most effectively - connectingcommunities to financial institutionsremotely, constituting the bridge that manydonors now put their hope to.

Connecting services with satellite technologyM-banking services can have a realdevelopmental impact, bringing financialservices to unbanked people. There is noquestion that these services are needed,demanded, supplied and used. There are,however, still many rural areas that havenever benefitted from any terrestrial-basedmobile services, and not even any type offixed connectivity or electricity grids. Theseareas remain outside of service coverage,out of reach of telecommunicationscompanies, utilities, and banks. For people

in these areas, the only availableconnectivity solutions utilise satellitetechnologies - such as very small apertureterminals (VSATs), which are, basically, two-way satellite ground stations with dishes ofless than three-metres in diameter.

Such technologies, of course, are notwithin the financial means of most people -but they are becoming increasinglyaffordable - and it is understood that theircommon availability can be made realitywith public or private sector stakeholdersupport. The case for wider adoption ofVSATs is particularly appealing. VSATs areused to transmit data such as the point-of-sale transactions between banks and shops.VSAT technology is deployed to work overone of two network configurations - knownas star or mesh topologies - or a mixture ofboth. Star topologies involve use of acentral uplink connection location, such asa network operations centre (NOC), to

transport data back and forth to eachterminal via satellite. Mesh topologies haveVSAT terminals relaying data via satellite toother terminals by acting as hubs,minimising the need for any centraliseduplink site. The use of a combination ofboth star and mesh topologies may beconnected in what is known as a multi-startopology, with each star and each terminalconnected to each other in a meshtopology. The benfits of suchconfigurations include minimal overall costof network operation.

The reality of transformational bankingM-banking has increasingly been heraldedas the tool for bringing financial services tothe continent’s largely unbankedpopulation. Its potential to transformcommunities, to change people’s lives forthe better – within societies that havepreviously have been outside the formal

BankingFINANCE

Terminal technologiesfor financial inclusionObservations on the use of satellite-based Internet connections to utilisecore financial services

Satellite connectivity can bring financialinclusion, transforming communitiessuch as this in Ghana (IICD)


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financial sector – is the key rationale here.The provision of affordable and secureservices facilitates financial transactions,primarily money transfer, is convenient forrural users, and serves as an inroad to largesegments of the population that have beenaccustomed to a cash-based economy -bringing them in to become a part of theformal financial systems and potentiallyturning them into bank customers - is thephenomenon underpinning the term‘transformational banking’.

Here we see that, once included inmodern financial systems, poverty can beaddressed in a more efficient manner.

Transformational banking is yet to beresearched and quantified to the extentthat evidence can be cited on the prospectsof serving unbanked through m-bankingmodels, to impact on poverty alleviationpositively. There is still a gap between thevisions and the financial reality of the poorof sub-Saharan Africa. Bear in mind, too,only one per cent of the sub-Saharanpopulation is regarded as banked, and thata substantial part of the rest lives in a cash-based, subsistence, barter-trade economicenvironment. Consider the economic datathat indicates that the majority of Africanssurvive on less than one US dollar per day,which means there is an extremely smallwindow for savings. One aspect of sub-Saharan existence is the clear need fordistribution of wealth through remittance -mostly within extended families but alsobetween friends. A second understanding isthat there is low reliance on formalemployment as a sourceof income.Consider that only four per cent of thepopulation in Tanzania has earnings thatcould be transacted through conventionalbank systems. Many Africans are self-employed, selling produce from farms orwork in informal sectors, which typically arecash-based.

It may be that the provision of structuredfinancial services to the unbanked will leadto socio-economic development. It may bethat banking and financial services mustsynergise with other insitutional andeconomic components to triggerdevelopment. It seems clear that there is nosingle quick fix for development. However,a commonly accepted understanding isthat the use of ICTs to supportdevelopmental initiatives and knowledge-building, within a multi-stakeholdernetwork of organisations, companies andindividuals, involving governments,academia, the private sector and civilsociety, can reduce poverty and promoteeconomic development - and that m-banking offers commercial, regulatory and

administrative opportunities to achieveconditions and structures for inclusion anduptake of services by those presentlyexcluded from financial ecosystems.

Under review, stillThe m-banking phenomenon must berecognised through actual mass usage ofm-banking services, of course, to havesignificant impact. Its relevance topoverty alleviation and actual impact isunder discussion - but existingdocumentation and research lacks the in-depth and balanced analysis to identifywhether m-banking activities have had orare likely to have any impact on povertyalleviation amongst previously unbanked

populations. Experienced m-bankingexecutives, policy makers, regulators,consultants and civil society executivesapproached by African Review of Businessand Technology do indicate, however, thatdevelopment through deployment andutilisation of ICTs, supported by measuresof private and public sector participation,will deliver market access to financialservices across rural as well as urbandomains, and that a key function ofdevelopment lies in the increasedavailability and affordability of satelliteconnectivity - for instance, via utilisationof VSATs in communites without stable orfully structured mobile communicationsnetworks. ■

The provision of affordable and secure services to remote communities,

through satellite connectivity, facilitates financialtransactions for rural users - and serves as an inroadto populations that have been accustomed to a cash-based economy - bringing them in to become a part

of the formal financial systems and potentiallyturning them into bank customers


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a device for reproducingdocuments onto paper.Although there havebeen variations inprinting technologywith inkjets, lasers,multifunction andspecialised devices,innovations have beenfew and far between.

All of this is, however, has changed as the world becomes increasingly connected and printingbegins to break down the traditional boundaries of the static device of the past.

Intelligent connectionsThe printer of today is no longer just a printer, but an intelligent, intuitive device allowing forprinting anytime, anywhere. Connectivity has enabled printers to offer so much more than thestandard technology of the past and has opened up a whole new world for this environment.

Following the technological trend curve of mobile devices, where a multitude offunctionality has been incorporated into single devices, printers now enable users to accessdocuments using smartphones and other devices, and print from the cloud, on demand, fromanywhere in the world.

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Technology firm IBM unveiled, recently, ablueprint that will improve the flow oftraffic, increase revenue collection from

the transport sector and enhancecollaboration between transport authoritiesin the City of Nairobi.

The technology includes the use of mobilephones, sensors and closed circuit televisionnetworks to better pinpoint traffic gridlocksand other issues.

Recent studies show that Nairobi losesUS$220mn annually from lost productivityoccasioned by massive traffic jams, increasedfuel consumption and pollution.

A team of IMB consultants proposed theuse of new CCTV cameras to show vehicleand traffic conditions in real time as well ascrowd- sourcing information from the publicon traffic snarl-ups.

Already, a number of traffic cameras havebeen set up and mobile applications such asVIPI can be used to give traffic updates toconsumers.

Intelligent integration“The intelligent operations centre wouldsupport existing initiatives like VIPI or#OverLapKe on Twitter by integrating the

data from them into a single source,” notedVincent Njoroge, IBM global business servicesfor East Africa.

Mobile service providers would also beintegrated into the system where they areexpected to share information from heirnetworks. For instance, increased density ofmobile signals would signify traffic jam andusing a map, commuters would be warnedusing SMS to avoid such spots and roads.

IBM consultants, however, add that for thesystem to work, the Traffic Department wouldhave to digitalise its records and develop adatabase that captures traffic incidencesaround the country.

An intelligent centre will also have to becreated and should be accessible usingmobile phones.

Through the system, a traffic police officerwould enter the number plate of the vehicleand find out its history on the spot through amobile phone.

Nairobi’s new communication networkMeanwhile, Internet giant Google hasintroduced a transport payment card on CitiHoppa buses plying Nairobi routes usingthe near field communication (NFC)technology.

Citi Hoppa is a private bus company thatoffers transport services within the city ofNairobi and its environs.

The card allows users to load money andmake fare payment by tapping on a handheld device in the buses.

Google Kenya communication managerMs Dorothy Ooko said that the project is onpilot basis and official launch with morepartners is in the offing.

NFC is a wireless technology that allowsdevices to exchange information when inclose proximity. It is commonly installed inSmartphones which are then used to makepayments in retail outlets. ■

Mwangi Mumero

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The revelation in November that a new international treaty onclimate change will be delayed until 2020 at the earliest means

that the actions of individual people and companies to reduce theircarbon emissions will become even more important. Recentresearch by truck maker Volvo and tyre manufacturer Michelinshows that a quick and simple measure can have a significant impacton emissions without the need for major outlay or new ways ofworking: checking and correcting the tyres and wheels on yourvehicle.

The study shows that having the right tyres, tyre pressure andwheel alignment can reduce fuel consumption – and therefore CO2emissions – by up to 15 per cent. If the environmental incentive isnot enough, in financial terms that could be a saving up to €8,000per vehicle per year.

“We know that wheel alignment, tyre type and tyre pressure allhave a major impact on fuel consumption,” says Arne-HelgeAndreassen, business area manager for tyres and wheel alignment atVolvo Trucks’ Aftermarket department. “There is a lack of awarenessin the transport industry about the importance of checking tyres

and wheel alignment, on both the truck and the trailer. At ourdealers, we can help haulage companies check the entire rig andcorrect any problems. If everyone did this, it would have a significantimpact on carbon dioxide emissions.”

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Weir Minerals Africa has recentlydispatched the biggest hose bendmanufactured on the African

continent - a 1,000 nominal bore (NB) hoseweighing 1.4 ton and a mandrel weighing1.4 ton - to a customer in Australia and iscurrently working on an enquiry for aneven bigger unit of 1,100 NB.

These orders follow the successfulcompletion in 2010 of what was then thebiggest hose bend to be produced on thecontinent, an 855 NB unit.

“Before we entered this market segment,there were only three suppliers in the worldcapable of manufacturing hose bends ofthis magnitude,” Weir Minerals Africa’s GrantRamsden, says. “We recognised thatdemand was greater than supply and tooka strategic decision to develop the capacityto produce these units as an additionalspecialised product line.

“There’s a definite trend in the miningindustry worldwide towards hose bendswith increasingly larger nominal bores andwe’re now fully geared up to meet andremain abreast of this requirement.”

Producing the capabilitiesRamsden says the biggest challenge at thestart of this initiative was to locate anengineering company capable ofproducing hose mandrels of the requiredsize.

“Tooling design has been carried out in-house by our engineering department inIsando and we’ve been fortunate enough tofind an engineering company based inKwaZulu-Natal that could manufacture thehose mandrel and the bend former for us.”

Ramsden adds that other challengesincluded the physical handling of themassively heavy hose bends and themanner of extracting the large mandrelfrom the cured product.

“In the end we devised a highlyinnovative solution for extracting the

mandrel in a very short time frame,” he says.“In fact, manufacturing the 1,000 NB unitwent very smoothly, because we hadtrialled and debugged the system whileexpediting the order for the 855 NB unitlast year.”

Weir Minerals Africa has integratedLinatex high wear, super abrasion resistantrubber into the design of the hose bend, aswell as high-strength synthetic fabric withsteel reinforcing within the body, forgreater flexibility.

“The use of Linatex branded rubber inthis application further entrenches us inthis market segment, because there is noother material that compares with it,”Ramsden says. “This is clearly an excellentexport opportunity for us and we’ve set oursights on the top end of the market.

“Backed up by the Weir brand, our hosebends are world class and have come ontothe international market at a significantlylower price than what has been on offeruntil now, even when factoring in thefreight charges.

“We’ve created the capacity necessary tomanufacture these large hose bends in

volumes and, in addition to the enquiry forthe 1,100 NB unit, we’re already handlingadditional orders for the 865 NB unit.”

The Weir Group acquired the Linatexgroup of companies in September 2010,and continues to market the renownedLinatex rubber products.

“These products are proving a valuableaddition to an already formidable WeirMinerals Africa product line serving thecompany’s key markets of mining,dewatering, energy, oil and gas,transportation, milling, processing, generalindustrial and water/waste management,”Ramsden says. “Linatex branded rubberworks well in tandem with many of ourproducts, as well as bringing exciting newand diverse solutions for us to offer ourcustomers throughout all our markets.”

Weir Minerals Africa delivers end-to-endsolutions for all mining, transportation,milling, processing and waste managementactivities. The company specialises indelivering and supporting a wide range ofslurry equipment solutions, includingpumps, valves, hydrocyclones, wear-resistant linings and dewatering products. ■

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The biggest hosebend in AfricaA 1,000 nominal bore (NB) hose weighing 1.4 ton with a mandrel weighing1.4 ton, manufactured for export to Australia

Weir Minerals Africa has dispatched the biggest hose bend manufactured on the African continent - a 1,000 nominalbore (NB) hose weighing 1.4 ton and a mandrel weighing 1.4 ton - to a customer in Australia


Although Africa is the world’s second largest continent with apopulation of over one billion people, 15 per cent of the worldtotal, and 20 per cent of its land mass, it only consumes three

per cent of the world’s production of electricity. Whilst the availabilityof energy alone, including its production, is not the only factor indetermining economic growth, it is a critical element. Without anadequate supply of electricity neither industry, nor commerce andagriculture, to name but three can function effectively, and in somecountries not function at all. Without it there is little ability to provideclean drinking water, irrigate crops, refrigerate medicines or powersmall scale industry. A lack of electricity is the clearest possibleindication of a country’s energy poverty.

Connecting the continentWhilst many rural electrification programmes have been establishedthere are still half a billion people in Sub-Saharan Africa who have noaccess to electricity, i.e. 45 per cent of the 1.3bn people in our universewho live without it. In the midst of economic, political and socialturmoil, many of the poorest nations in Africa are still unable to findthe resources to bring national electrification schemes to their people,so it is of little wonder that the demand for diesel engine drivenelectrical generating plant is so high.

In 2011 Africa was the world’s fourth largest importer of generatingsets. In total the continent imported 110,435 units, 51,000 of themhaving a rating of less than 7.5kVA and a further 39,200 between 7.5and 75kVA. A half of all imports were sets of a rating less than 375kVA,with only 15 per cent above 1,500kVA. In aggregate terms their

combined generating capacity was equivalent to 6,910MWe, almost13 per cent of global exports. The Far East (31 per cent), Europe (23 percent) and the Middle East (19 per cent) were the three larger regions.Fig.1. highlights African imports as a proportion of total consumption.

Africa’s overall consumption of diesel engine driven generatingplant in 2011, when measured in aggregate megawatts, was 5 percent more than the previous year. A total of 121,200 generating setswere either imported or domestically assembled for sale having agenerating capacity of 7,940MWe and a market value of US$1.5bn.

Power potentials,from North to SouthAnalysis of the past year’s business in generating sets for Africa finds thatNorth African issues have affected sub-Saharan demand negatively – butthat demand, and so the potential for growth, remains strong

51African Review of Business and Technology - July 2012

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North African eventsDuring the year growth was inhibited by thedecline in sales to the countries of NorthAfrica, in particular Egypt and Libya, and tolesser extent Tunisia. Genset sales in thesethree countries fell by 2,800 units (540MWe).North Africa has traditionally represented aquarter of African consumption, but in 2011this decreased to less than a fifth (Fig.2). ). Insub Saharan Africa sales declined in the IvoryCoast, Sudan and Zimbabwe.

According to the IMF Tunisia saw its GDPgrowth decline from three per cent to zero in2011, whilst Egypt’s declined from 5 per centto one per cent. But far the greatest fall was inLibya which is believed to have contracted bya half following the civil war. This has beenreflected in the decrease of foreigninvestment in North Africa, with these threecountries in particular having been severelyaffected. In Egypt foreign investment fell fromalmost $12bn in 2007 to $500mn last yearand in Libya from about $5bn to nothingduring the same period.

Whilst almost 20,000 more generating setswere consumed throughout Africa in 2011than in the previous year, bringing the total to121,200, there was a significant change inmix. Generating sets below 7.5kVA weremuch in demand, increasing by 12,000 unitsto 51,000, the highest level ever recorded.However, they still only represented 2.5 percent of the aggregate generating capacity ofall sets, and over 80 per cent of these were ofChinese origin. Similarly gensets in the range7.5/75kVA increased in volume by 7,500, butin all other categories the pattern of demandwas unchanged (Fig.3).

Across the continentOf the 54 African nations - which now includethe state of South Sudan and the islandnations of Cape Verde, São Tomé and Príncipe,Madagascar, the Comoros, the Seychelles, andMauritius - five countries accounted for 58 percent of the continents generating setconsumption, and 10 nations for 73 per cent..The five key markets have remainedunchanged for several years viz. Nigeria, SouthAfrica, Angola, Egypt and Algeria, despite onlymodest growth in Nigeria - the continent’slargest market - and a 25 per cent decline inEgypt during 2011 (Fig.4).

It is not surprising that Nigeria is the largestAfrican genset consumer when its populationof 155mn enjoy only very few hours ofelectricity each day, if at all. Many Nigerianswho can afford it continue to purchase theirown power plants. In the past three years70,000 generating sets have been installed,52,000 of them having an output less than75kVA. Today much of the power supply isgenerated in domestic homes and by small

business enterprises. This could change if theprivatisation scheme for the Power HoldingCompany of Nigeria (PHCN), which is much

talked about, but suffering continuing delaysat the time of writing, finally goes ahead. It isalso surprising than when GDP has been

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growing at over 6 per cent per year there is still only a very smallmanufacturing sector.

Nigeria, the largest of the African markets, experienced an uncertainyear. Although generating set sales increased by 4,500 units to 24,500,they were all of an output between 7.5 and 30kVA. Above this therewas an across the board reduction in demand for most categories withthe exception of generating plant in the ranges 250-375 and 1,000-1,500kVA. However, 2011 was the best year since the peak of 2008,even if the recovery was modest, and saw a small growth in theaggregate generating capacity from 1,520 to 1,630MWe. Thecompound annual growth rate for the past decade has been 11.5 percent, but this level of growth is unlikely to return in the short term.Even so the market in 2011 was worth $315mn.

Some observers forecast that Nigeria’s economy may eventuallyovertake that of South Africa to become the largest economy in theAfrican continent as prices and consumer spending increase. Theaverage annual growth in GDP between 2004 and 2009 was 6.3 per centand this is expected to grow to over 8 per cent in 2011/12. Agricultureconstitutes 33 per cent of GDP, industry 41 per cent of which only 3 percent is manufacturing, and 26 per cent services. Imports, which includegenerating sets, are 22 per cent of GDP. The underlying prospect forgrowth in the generating set market remains strong.

The South African economy by contrast was growing at a slowerrate of 3.6 per cent per year between 2004 and 2010 and wasexpected to do so again in 2011, increasing to 3.9 per cent in 2012.However, economic growth has been held back since 2008 when thedemand for electricity, due to rapid industrial growth during theprevious decade, outstripped generating capacity. The power cuts thatensued resulted in the government moving quickly to implementmeasures to reduce both domestic and industrial consumption, aswell as implementing a plan to fund and build new power stations.The power disruption and cuts caused a 2.5 times growth in thedemand for diesel generating sets. However this demand, which wasnot sustained in 2009/10, did pick up moderately in 2011. In 2010, thelatest year for which statistics are available, South Africa’s electricitygeneration of 268,000 GWh was more than ten times that of Nigeria;the highest in Africa and 16th in the world.

Whilst Eskom, the major electricity provider, plans to increase itsshare of the current installed generating capacity of 44,GWe, mostlycoal fired at present, by a further 40 GWe by 2025, the South AfricanDepartment of Energy forecasts the need for 52GWe by 2030. By thenthe element of coal fired generation should be reduced to just under ahalf, with nuclear generation at 14 per cent.

Unlike Nigeria only 3 per cent of the origin of South Africa’s GDP is inagriculture. Industry accounts for 31 per cent of which manufacturing is15 per cent, leaving a balance of 66 per cent to services. The demand fordiesel generating plant is, therefore, significantly different. In 2011 themarket consumed 9,900 generating sets having an aggregate output of1,000MWe. Of these, 70 per cent of all gensets were in the range 7.5-375kVA and only 6 per cent above 750kVA. Despite the lower demand in2009/10, the market, which picked up by 8 per cent in aggregate outputterms in 2011, has been growing at an underlying rate of 18 per centannually for the past five years and is currently valued at $165mn.

Angola, the fourth largest genset market in Africa, was one of thefastest growing economies in the world enjoying double digit growthuntil the global recession of 2008. Then, lower oil prices stalledeconomic growth to 2.4 per cent and caused high consumer inflation.In 2011 higher oil prices helped Angola get back onto an even keel,turning its budget deficit of 2009 into a surplus. However, oilproduction and its supporting services, which contribute about 85 percent of GDP, have been the sole reason for the high growth rate inrecent years. Despite this oil wealth a third of Angola’s 13mnpopulation still rely on subsistence agriculture.

Electricity production at 4,000 GWh annually is about a fifth ofNigeria’s, but the government of Angola has set itself an objective toprovide its urban population with 100 per cent electrification by 2012.Even if it happens the market for generating plant will continue to growbecause the consumption of electricity per head of population is only300 kilowatt hours annually. In 2011 the market consumed 12,900gensets with an aggregate generating capacity of 690MWe. This was aconsiderable improvement on 2010 after the fall in 2009/10 when themarket declined by 40 per cent. A vast majority of the units sold (7,000)were of an output less than 7.5kVA, 3,800 between 7.5 - 30kVA and 1,680between 75 - 375kVA. Today the market is valued at $135mn and hasenjoyed an underlying growth rate of 15 per cent for the past five years.

Three of North Africa’s markets, Egypt, Libya and Tunisia were affectedby the popular uprisings which caused a disruption of economic activityaffecting both domestic production and imports. In Egypt, the mostpopulous country with 83mn people and the third largest generating setmarket in Africa, the effect was not as dramatic as might have beenexpected. Demand fell by only 25 per cent having recoveredsubstantially in 2010 from the set-back in 2009.

Although Egypt has a large domestic consumer market its foreigncurrency reserves have been badly affected. The outlook for 2012 must,therefore, be somewhat cautious despite an annual growth trend of 14per cent in the generator set market for the past 5 years. In 2011 theEgyptian economy grew at only 1.2 per cent, well down on 2010, andunemployment rose. Foreign investment also stalled as investors infuture energy and construction projects waited to see how the politicaland economic climates might develop. It is unlikely that the generatingset market will show any significant growth in 2012 as economic growthis likely to remain sluggish as the government utilizes foreign exchangereserves to support the Egyptian pound. Last year slightly less than 5,000generating sets were consumed having a generating capacity of675MWe and a value of $110mn. Generating sets of an output exceeding375kVA accounted for 70 per cent of the aggregate generating capacity.

In 2011 the Libyan genset market collapsed from its peak in 2009.Consumption more than halved from the previous year when 3,000 unitswere sold. Most marked was the decline in the availability of units above375kVA, demand having fallen from 330 in 2009 to 20 last year. Themarket was valued at only $12mn, a fifth of its potential. The aggregategenerating capacity of all units was 60MWe.

The Libyan economy depends primarily upon oil revenues whichrepresent 95 per cent of Libyan export earnings and 65 per cent of GDP.The country holds the largest proven oil reserves in Africa. In the serviceand construction industries, which expanded rapidly in the years beforethe uprising, both construction and oil companies are now competingferociously with each other in a race to secure contracts to rebuild theeconomy. With a GDP growth in excess of 10 per cent in 2010, apopulation of 6.6mn and potential electricity consumption of 24bnkilowatt hours per year the generating set market should, in due course,be able to regain its annual growth rate of at least 15 per cent andachieve sales approaching $60mn

Although Algeria is the fifth largest generating set market in Africa itseconomy remains dominated by the state. It is the world’s fourth-largestexporter of natural gas. It also has the world’s eighth-largest natural gasand the 16th-largest oil reserves. Natural gas is the prime source ofAlgeria's electricity generation which reached a production of 45,200GWh in 2010. Whilst dependant on the hydrocarbon sector, whichaccounts for 60 per cent of the country’s revenues and some 30 per centof GDP, it also represents 95 per cent of Algeria’s exports by value. Withan underlying annual growth rate for generating sets of 9.5 per cent themarket consumed 5,250 units in 2011 having an aggregate output of560MWe and a market value of $93mn. Mostly in demand weregenerating sets of outputs exceeding 375kVA. These represented 65 percent of the total generating capacity.

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Thirteen months after the revolution theTunisian economy shows no sign of growth.Investment has slowed and tourism, a keyelement of the economy, is suffering badly.Unemployment is also rising and thegovernment’s target of 4.5 per centeconomic growth this year looks unlikely tobe achieved. This was reflected in thedemand for generating plant in 2011. Whilsta relatively small market, Tunisian demandfell to 640 sets with a generating capacity of50MWe and a value of $9mn. Last year theeconomy contracted by 1.8 per cent. Bycomparison, not dissimilar economies inMorocco and Algeria saw growth of 4.5 and 3per cent respectively.

Importing countries and market driversImports, as already identified in Fig.1,constitute a major element of Africa’s gensetconsumption. After the peak of 2008, when115,250 generating sets were imported,imports fell to 91 and 90 thousand unitsrespectively in the following two years.Whilst 2011 signalled a year of recovery -imports reaching a level of 110,500generating sets - the pattern of demandchanged significantly. This was due to thesubstantial decrease in the consumption and

import of generating sets of ratings above75kVA. Whilst the import of sets in the range1-75kVA increased from 80 to 90 thousandunits, those between 75-375kVA, the centreof gravity of the generating set business,almost halved to 15,250 units. Above 375kVAthe decline was less marked but the overall

effect is that since 2008 the aggregategenerating capacity of imports of all Africancountries has declined by 26 per cent from9,325 to 6,910MWe, having a value of $1.3bnin 2011.

Almost two thirds (71,875) of allgenerating sets imported into Africa in 2011


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were of an output less than 30kVA,accentuating the rapidly growing demandfor electricity by small scale agricultural,commercial and domestic users. If setsbetween 30 to 75kVA are included the totalrises to 90,250; eighty two per cent of allimports. Although of a much lesser volume,the import of generating plant between 750to 2,000kVA has more than doubled in thepast five years reaching a total of 1,500MWein aggregate.

The major beneficiaries of trade with theAfrican continent have been the UnitedKingdom, China and France who betweenthem accounted for 62 per cent of all importsin 2011 – 4,250MWe. If Italy, Spain and SouthAfrica (an emerging supplier) are includedthe total increases to 76 per cent.

Since the peak of 2008 both China andFrance have more or less maintained theirmarket shares of 17 and 13 per centrespectively in terms of the total MWeimported by the African continent. Bycomparison the United Kingdom has slippedseveral points to an overall market share of32 per cent (Fig.5). Even so the UnitedKingdom remains the leading supplier ofgenerating sets in the range above 7.5kVAwith a 40 per cent share between 7.5-

750kVA. China, by comparison, nowdominates the under 7.5kVA market with an80 per cent share and has progressivelygained market acceptance in the rangeabove 750kVA. Both the Lebanon and SouthAfrica have seen increases in their marketshare for each of the last three years.

During the past five years the fastestgrowth has been for small generating plant.Consumption of sets below 7.5kVA hasgrown at a rate of 12.5 per cent per year, andimports at a somewhat higher rate due tothe volume of Chinese trade. Between 7.5and 75kVA demand has grown at 9 per


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annum, and above 75kVA both consumption and imports haveexpanded between 4 and 7 per cent annually. Whilst the short termprospects remain uncertain for some countries, overall growth for thecontinent in 2012 is most likely to be in the range of 8-10 per centcompared to five per cent in 2011.

The global contextIn global terms, the worldwide consumption of diesel and gas enginedriven generating sets in 2011 was 84,050MWe (Fig.6), a 6.5 per centincrease on the previous year. If not as high as the 12.8 per cent increasein 2010, demand continued to recover following the fall in 2009. Thecompound annual growth rate for the five years since 2006, whenglobal demand reached 61,200MWe, has been 4.4 per cent, and wasvalued at $15.9bn in 2011. 1.21bn generating sets were sold in the year,86,000 more than in 2010.

The Far East has remained the world’s largest regional marketthroughout the last decade, though ten years ago it was only marginallylarger than that of North America. During the past five years it hasgrown at an annual rate of 8.5 per cent. But not all markets haveenjoyed such growth. By comparison Europe and North America, thenext two largest markets, have shown no underlying growth over thesame timescale.

The South American market, though representing only six per cent ofglobal demand, has been expanding at a rate of 22 per cent per annumsince 2006 (when its share of the world market was only 3 per cent),whilst Africa and the Middle East have been growing at the somewhatlower rates of 8.5 and 9.7 per cent respectively (Fig.7).

In 2011 a total of 1.21mn generating sets were consumed by theworld’s markets. Although half of these were of an output of less than7.5kVA, they represented only 3 per cent of the MWe demand. Thegreatest demand - which has not changed significantly during the last


10 years - was for sets in the range 75-2,000kVA. These totalled 223,000 units in2011 representing 71 per cent of theaggregate MWe demand (Fig.8).

If we consider the market in terms of value,rather than aggregate electrical megawattsconsumed, then a different pattern emergesdue to the higher cost per kilowatt of loweroutput generating sets. Units below 7.5kVArepresent an 11 per cent share, whilst those inthe range 75-2,000kVA are 54 per cent. Thevalue of regional markets is shown in Fig.9.

Whilst consumption measures the overallsize of a market - taking into consideration aregion or countries domestic production,imports and exports – most countries areacutely aware of their trade balances. Becausethe largest volume of generating sets aremanufactured within twenty or so countries,and with the exception of China, Japan andIndia, mostly located in the WesternHemisphere, export/import trade representsa high proportion of the total consumption.Whereas one might have expected theproportion of imports to total consumptionto have decreased over the last five years asmore domestic production came on stream insome of the emerging economies, it has ineffect increased from 58 to 64 per cent.

Latest estimates indicate that in 2011 atotal of 583,300 generating sets wereexported by the major producing countrieshaving a value of $9.5bn and an aggregategenerating capacity of 54,100MWe. The

United Kingdom was the dominant exporterwith a 24.3 per cent global share(13,100MWe), followed for the first time insecond place by China with an 18 per cent

share; marginally ahead of the USA with 14.2per cent (Fig.10). ■

Copyright: Gerald Parkinson © 2012

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AcknowledgementsData for this article is provided fromGENSTAT, a definitive database analysingthe worldwide market for generating setsin 12 bands for over 200 countries. Formore information contact GeorgeWilliamson at Parkinson Associates - Tel. 01452 534 388 or e-mail [email protected]


In 2011 African imports have seen astrong progression of over 14 per cent,going back to higher levels. Despite this

important growth, we are still far from thelevels of 2008, but the continuousprogression is definitely giving strongpositive signs.

The high power ranges imports havebeen stable and the growth has mainlybeen in the lower power ranges from 0 to75 kVA giving us strong signs of theremaining financial pressure oninvestments for larger equipments.Nonetheless, this also gives us strongindications of the power needs in thecontinent.

Table 1: Top African Importing NationsNigeria Angola Egypt 21% 11% 6%

Despite a growth of over 30 per cent over2010, with an incremental $64mn imports,Nigeria, the largest African market, is still 15per cent off its 2008 levels, which is a veryencouraging sign for the potential of 2012imports. Angola and Egypt close the list ofthe top three, representing 38 per cent ofthe total African importing nations.

Who has benefited from the growth?

Table 2: Top Exporters to AfricaProgression over 2010 (USD)UK China France + 38% + 27% - 7%

The main exporters to the continent areUK, China and France - representing morethan 55 per cent of total exports. In 2011only China and UK have taken advantage ofthe growth in the market and have alsomanaged to gain market share over France,which has declined by over seven per cent

compared to 2010. A strong Euro ismaintaining pressure on Frenchmanufacturers’ exports into Africa - and thiscould still be the case this year if theexchange rate balances do not move.

The impact of the Arab Spring on business in North Africa.

Table 3: Percentage Import Growth: 2010 vs 2011Algeria 21Egypt -32%Libya -77%Morocco 17%Tunisia -40%

Over a year has passed sincerevolutionary activity commenced in manyNorthern African countries. It is interestingto look at the market movements inMorocco, Algeria, Tunisia, Libya and Egypt,following these events.

Overall, the region’s imports havedropped by 25 per cent compared to 2010 -but the region still represents a strongmarket in Africa, with strong potential, as itis trading far below its normal level.

Despite a drop of over 30 per centcompared to 2010, Egypt remains in the topthree markets in Africa. Algeria has seen agrowth of 21 per cent to over $70mn ofequipment shipped last year. The strongestdecline has been in Libya, at -77 per cent. ■

Source: PGS Consulting Ltd (www.powergen-statistics.com)

GensetsPOWER

60

Markets and movementin power generationThe continent’s key importing and exporting nations in recent years exhibitsigns of continued potential as demand for power remains high


Special Offer for AfricanReview readers30% Discount for the purchase of 2011Global Market Report, worth €2,995. E-mail:[email protected] and askfor your African Review Offer


LightingPOWER


PRUF LED, an American LED lighting manufacturer and distributor, ispartnering with the non-profit Restoration Gateway to buildhospital and dental facilities in Uganda where one in seven

children dies of disease by the age of five.PRUF LED will supply LED lights for medical facilities and other

community centers served by Restoration Gateway in Uganda. “Ourcompany works to improve the American environment and economy

with our manufacturing of energy saving technologies, and today we arehappy to also make a positive difference in one of the world’s poorestcountries,” says Frank Jennings, chief financial officer of PRUF LED.

“This will be revolutionary for the people of Uganda,” says RestorationGateway’s Dr. Tim McCall who is a family physician from Waco, Texasnow living in Uganda with his wife, Janice. He says, “PRUF LED’sgenerous donation of LED lights will allow us to perform critical healthexams and surgeries, enable orphan students who live at RG to studyand read at night, and make our auditorium/gymnasium functionalafter dark for plays, choirs and adult education in a region of the worldwhich currently has no power grid.”

PRUF LED is headquartered at 7333 IH 35 S in Robinson, Texas andwas founded in 2008 by Greg Klepper who is now PRUF LED’s Chairmanof the Board. “PRUF LED’s patent pending technologies consume one-third the energy of traditional lights, reduce maintenance costs, andresult in significant savings for commercial and industrial sectors, alongwith schools and government agencies,” says Klepper.

PRUF LED is a privately owned American LED lighting manufacturerand distributor with a state of the art Research & Development Labproviding turnkey solutions to the retrofit and new constructionmarkets. ■

LEDs to light up Uganda

PRUF LED donates lights to nonprofit for medical facilities in Uganda - (L-R) PRUF CEOChris Sadler and CFO Frank Jennings, Restoration Gateway's Janice and Dr. Tim McCall


Siemens and Masdar Institute of Science and Technology, anindependent research-driven graduate-level university focused onadvanced energy and sustainable technologies, have concluded thefirst carbon capture and storage (CCS) research collaboration project.The R&D projects are focused on theimprovement and adaptation of theproprietary Siemens Post-Combustiontechnology to the requirements of thelocal markets, i.e. CO2 capture at gasfired power stations and utilisation ofCO2 for enhanced oil recovery (EOR). Thestart of the first project on ‘Evaluation ofCO2 Purification Requirements andEvaluation of Processes for ImpuritiesRemoval from the CO2 Product Stream’was in May 2011. The project evaluatedthe CO2 purification requirements for theCO2 pipeline transportation, EOR andCO2 geological storage. Furthermore, itassessed the CO2 streams specificationsand impurities combined with theselection and evaluation of the processesfor CO2 stream purification.

The collaboration between Masdar Institute and Siemens continues

with a second project that started in December 2011, which is focusedon the evaluation of CO2 capture process waste reuse and recycling inUAE. The Siemens Post Combustion technology offers a substantialadvantage, a sellable sulphur product will be separated with the new

solvent reclaimer technology.“Siemens has developed a new post-

combustion carbon capture technologybased on Amino Acid Salt formulations.This technology is environmentally veryfriendly and has the lowest investmentand operation costs”, said NicolasVortmeyer, Head of New Technologies inthe Siemens Energy Fossil Division. “Thecollaboration with Masdar Institute isvery important for Siemens and theresearch projects will support theadaptation of the Siemens PostCombustion Technology to therequirements of the local market, i.e.retrofit of gas fired power stations andutilisation of the CO2 for Enhanced OilRecovery. We are confident our

partnership will extend to cover more areas in sustainable technologyfor the benefit of the wider community.”

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Siemens’ Carbon capture and storage (CCS) technology binds CO2scrubbing agents to CO2 and on heating releases it again, whilstremaining stable in the flue gas atmosphere


64

EQUIPMENT

Power

ABB, the leading power and automation technology group, hasreleased its annual estimate of the savings achieved by its

installed base of drives. About 310mn megawatt-hours (MWh) ofelectric power was saved by ABB drives in 2011, an increase of 19per cent compared with the previous year. Electric drives are usedto regulate the speed and power consumption of electric motors.Industrial electric motors account for about 25 per cent of all theelectricity consumed worldwide.

The savings from ABB drives in 2011 correspond to 260mn tonsof CO2 emissions - had this power been generated by fossil fuels -or electricity costs savings of approximately US$34bn forcustomers(i) at 2011 US electricity prices. These savings areequivalent to the electricity generated by more than 30 nuclearpower station blocks.

“The future potential for energy and cost savings is enormoussince only about 10 per cent of industrial motors are combinedcurrently with electric drives,” said Ulrich Spiesshofer, member of

the Group Executive committee and head of ABB’s DiscreteAutomation and Motion division. “Using energy more efficientlywill remain, for a significant time, the biggest opportunity availableto cut energy consumption as well as costs and emissions.”

Electric motors are used widely in industry, for example, whenpumping water, running fans and air conditioning, conveyinggoods over belts, rolling steel, moving elevators, etc.

ABB’s annual savings estimate is based on a comparison of theaverage electricity consumption in applications with and withoutdrives. Many electric motors that are not equipped with drivetechnology run at maximum speed and are simply throttled if lessperformance is needed.

Energy accounts for 92 to 95 per cent of the life cycle cost of amotor, depending on its size, so an investment in electric drivestypically pays back in less than two years.

(i) At 2011 US electricity prices

Energy savings from electric drives

Scalable electricity stations, from Hatz DieselDeveloped and delivered by Hatz Diesel, SES(scalable electricity stations) offer a qualityof power provision that may exceed standardrequirements, delivering up to 100 per centof electric load engagement. Operation isautomatically controlled to enable the lowestpossible fuel consumption, with reducedwear, a reduced risk of a system breakdown,and no shortened maintenance intervals -and, hence, full exploitation across anengine’s lifetime.Key features also include; an automatisedbalance of operating hours betweenengines; superior flexibility as additionaltwin-packs can be added anytime; highredundancy; the option of recycling wasteheat (cooling air and exhaust gases).Moreover, SES is extremely compact in size,with a low construction height - and is easyto install, with a self-ventilating system (air-cooled engines) incorporated.

Reliable, and robustWith robust and proven technology, Hatzengines offer the benefits of extremely longlifetime - at 15,000–40,000 hours, depending

on load and maintenance quality.Furthermore, servicing is easy, as thisconventional technology offers reducedrunning costs compared to relativelysophisticated common-rail systems. Theengines are air-cooled, so external heatexchanger is required, and there is more

flexibility during use even under adverseconditions (for example, in tropical areas).Note, also, that load response is immediateand dynamic, and there is no exhaust gasemission requirement in this power class.

hatz-diesel.com



10 - 3.000 kVA

S11 ATR July 2012 Report G 01_Layout 1 21/06/2012 11:53

Developed from tough military plant,the excavator is the most useful singlepiece of contractor's plant available

anywhere in Africa today. But to get the mostwork out of it - and that can be the dailyequivalent of 100 labourers or more - it has tobe properly used. That means thoroughtraining of the operator, and running themachine on two shifts if possible every 24hours. Most are equipped with powerfullighting these days.

Training means providing instruction on themany routine tasks that all excavators canhandle, including the extras made possiblewith attachments like breakers and specialisedlifting kit. This means planning the sequenceof 'bites' or passes, arranging for matchingcomplementary plant like dump trucks andbladed equipment to be available whenneeded, disposing of waste systematically andmaking good after the job is finished.

It also means learning the special features ofthe machine in use. 'Add-ons' like Komatsu's'Mechatronics' and Cat's GPS sensors forlevelling and alignment have increased theversatility of the modern excavatorenormously, and some features aid fuel savingby offering an economy mode too. But, just aswith the modern PC or intelligent cellphone,more than half of these sophisticated extrasare usually unknown to the user who justcarries out the task in the same old way.

So, arrival of new plant in the stockyardshould always be accompanied by a dealer-ledrundown of its capabilities in front of all likelyoperators. As the owner of the business youshould be there too.

Essential to all digger operations in Africa isthe maintenance of structural stability duringall excavations. That means no-one gets hurtand penalty clauses aren't imposed.

So, even before the excavator is moved ontothe site the following information needs tohave been extracted from the client andpassed on to the foreman: - a summary ofknown ground conditions including liability to

flooding the approximate location of allexisting services, underground structures andwatercourses the location and extent ofnearby foundations and public roads informalhousing in the area, and uses to which theland is put what access local inhabitants,children and their livestock have to the site.

Standards for safetyApart from being run over (lines of sight areoften poor and/or obstructed) the majordangers when working with a digger are of thecollapse of the works themselves, thedislodging of excavated material as it mountsup (370 is the standard angle of rest for loosematerial, but this varies widely), damage toand from power cables including overheadones, people falling into the trench (and thedigger itself), and damage to structures thatneed to be preserved. So someone who iscompetent should inspect the excavationsupports at the start of every shift, and checkhow the progress of works has affected thesafety - in all its senses - of the site itself.

Every year in Africa many people are injured

by actually falling into trenches, by sidecollapses and by materials sliding from a wastemound carelessly piled alongside. A lot ofequipment, hand tools and so on, is lost too, aswell as time. Remember that every single cubicmetre of damp soil, hardpan or whatever dugout by the machine - that's just one bite for alarge machine - can weigh as much as a tonand is inherently unstable when piled closedto the trench itself. Heavy rain increases therisk all round; settlement over time reduces it.

To stop the excavations themselves actuallycollapsing the operator needs to decide beforestarting out what temporary support such astrench sheets, timber baulks and so on will beneeded, and to make sure they are available -along with the labour needed to place them -ahead of the work. A safe angle of repose,shallower for the deepest excavations, shouldalso be decided on and agreed with the clerkof works. This will slow progress but it shouldhave been allowed for in the initial costing.anyway. Sometimes what is known as amovable and extendable 'trench box' needs tobe installed or extended once the day's workhas been completed; this may require crossbracing or other internal support.

Damage and injury from falling ordislodged material can be completelyprevented by installing edge protection as thetrench is extended, insisting on the workforcewearing head protection, and marking alldanger points with plastic 'keep off' tape.Even more damage can be avoided if allvehicles and plant not actually involved in thework are kept well away until it is complete orhas been fenced in.

Finally, someone knowledgeable shouldhave a close look at the works at the start andend of every shift, until the excavator ismoved to another part of the site or thesurface is made good. If he notices somethingwrong for legal reasons it should be clearlyrecorded on paper, along with a note of whatneeds to be done and whether or not this hasbeen checked. ■

ExcavatorsCONSTRUCTION

66

The mostmultifunctional kitHydraulic excavators boost site productivity massively, but the sheer poweravailable these days means a matching increase in hazards

Today's excavators have been designed to dig safely andefficiently



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2007-502_015 Bausammel_ohne_LWE AR-01.indd 1 27.02.12 14:42

South Africa is rolling out a multi-billion rand, state-ledinfrastructure drive, accoding to the nation’s Deputy President,Kgalema Motlanthe. SA’s government has been preparing to

engage its provinces and other stakeholders on implementation of aninvestment initiative first announced by President Jacob Zuma in hisState of the Nation address in February 2012, which addresses 17strategic integrated projects that cut across energy, transport andlogistics infrastructure to schools, hospitals and nursing colleges.

Motlanthe told delegates attending a Provincial and LocalGovernment Infrastructure Conference in Boksburg, east ofJohannesburg, that public-private partnerships were on the cards, andthe government would be engaging businesses on the plan.

Economic and social infrastructureThe projects cover economic and social infrastructure across all nineprovinces, with an emphasis on undeveloped areas and opportunities.

Energy projects will focus on supporting sustainable "green" energyinitiatives through a diverse range of clean energy options.

Several new hospitals will be built, and existing ones refurbished inpreparation for the National Health Insurance Scheme. About 122nursing colleges will be revamped, and 90 new schools will be builtthis year.

Limpopo, KwaZulu-Natal, Western CapeInvestment in rail, water pipelines, and energy generation andtransmission infrastructure have been identified for Limpopoprovince. Officials say the emphasis here will be on coal andplatinum mining for local use and export, with the region's railcapacity expected to be extended to Mpumalanga province's powerstations.

In KwaZulu-Natal, the plan is to strengthen the transport corridorbetween South Africa's main industrial hubs, while beefing upaccess to Durban's export and import facilities.

In the Western Cape, work will focus on strengthening maritimecapacity in the Saldanha-Nothern Cape linked region.

Work getting under wayEconomic Development Minister Ebrahim Patel, presenting theproject plans, said these were now being aligned with humansettlements and skills development planning.

"The infrastructure programme has two components," Patel said."There is a component that we are implementing now, andconstruction is commencing."

The Presidential Infrastructure Coordinating Commission hadbeen working on guidelines in order to ensure clear coordinationamong different provinces working on this component, Pateladded.

"The second part deals with plans that have not beenimplemented because ... of lack of clarity over which sphere ofgovernment has the responsibility and ... lack of coherent businessplans to unlock the finance from Treasury for these projects."

Plans to address shortage of engineersHowever, Patel said the government was concerned about theinsufficient number of engineers, which could threaten the speedyimplementation of some of the projects. Several strategies werebeing explored to address this, including entering into deals withuniversities and Further Education and Training colleges to ensurean expanded supply of engineers for the economy.

"The broader principle is that as our infrastructure programmegathers pace, one of the key bottlenecks we are going to hit is theshortage of engineers, so we have to now ensure that there isappropriate development of new skills commensurate with theambition of our plan," Patel said.

"We think it's about time we encouraged ... engineers to comeback to South Africa through the programme of work we have forthem," he added. ■

BuaNews

South AfricaCONSTRUCTION

68

Investing to build anation’s infrastructureA national infrastructure drive, first announced by South African PresidentJacob Zuma, begins to build on stakeholder support

His Excellency Kgalema Motlanthe,Deputy President of South Africa



Experience the Progress.

The Group

Liebherr-Export AGGeneral-Guisanstrasse 14CH-5415 Nussbaumen, SwitzerlandPhone: +41 56-296 1111E-mail: [email protected]

2007-502_015 Bausammel_ohne_LWE AR-01.indd 1 27.02.12 14:42


Mantrac Nigeria is the sole authoriseddealer for Caterpillar products inNigeria. It, therefore, distributes and

supports the full range of CAT products in thecountry, with construction equipmentincluding-wheel loaders, skid steer loaders,dump articulated trucks, backhoe loaders,excavators, motor graders, track type tractors.And, through the length and breadth ofNigeria, it distributes mining equipmentincluding-hydraulic excavators, diesel andelectric-off highway and underground miningtrucks, and underground mining loaders.

Furthermore, Mantrac Nigeria helps inmitigating the acute shortage of powersupply in the country, serving numerousclients, with support from Caterpillar, which isamongst the world’s largest manufacturers ofmedium-speed engines and high-speedengines at between from 40KVA to10,000KVA - including, notably, the Caterpillarand Olympian generators at 10KVA-220KVA.

Mantrac has been in Nigeria for over 60years, and so is in a position to use a wealth

of experience to provide turnkey servicesefficiently and effectively, including projectssuch as the international airport operations-in Lagos and in Abuja, covering all stages ofthe power system provision from systemdesign and engineering to testing andinstallation, and even long-termmaintenance and repair.

To support its customers further, MantacNigeria provides material handling andwarehousing equipment.

Mantrac Nigeria offers its customers achoice of new or used products. Since itbelongs to a multinational entity, it draws onthe benfits of having a large and focusedorganisation. Mantrac is headquartered inCairo, Egypt, with offices in Ghana, Kenya,Tanzania, Uganda, Sierra-Leone, Russia andIraq. Bought new, the products carry theoriginal Caterpillar warranty. Bought used,the customer is buying equipment that hasbeen thoroughly inspected, expertlyrepaired and often backed by extendedcoverage options. And for customers not

interested in outright purchase, MantracNigeria also provides the option to rent.

And there is a high quality approach toafter-sales service, backed nationwide bythree offices in Lagos, two in Abuja, two inWarri and Port-harcourt, one in Enugu, andtwo in Kano and Kaduna. Each of thesebranches is open six days a week, withflexible working hours. There is also acomputerised spare parts inventory system,which offers immediate access to informationon stock levels and availability, so that partscan be supplied within 24 hours.

An admirable innovation is the ‘S.O.S.’maintenance support programme, whichhelps to detect problems early so that theycan be repaired before becoming a majorfailure, helping to schedule fitting andmaintenance.

Opportunities for leadership In interview with African Review of Businessand Technology, Mr Ayman Ezz El Din,Managing Director at Mantrac NigeriaLimited, spoke of the company’s commitmentto infrastructure development in the country.

African Review: How long have you beenworking in Mantrac?Ayman Ezz El Din: I have been working inMantrac for 27 years, having joined in 1987 andover these years I have occupied variouspositions: Field Services Engineer, TechnicalSupport Manager, Power Systems Manager forEast Africa, Regional Manager for Africa forseven years - and, as the MD of Mantrac Nigeria,this is my fourth year; I resumed in 2009.

AR: You have spent most of your productiveyears in Mantrac-any special reason?Ayman Ezz El Din: Mantrac is one of the bestorganisations to work for, the environment isvery conducive. In spite of the fact that Icould work elsewhere if I so wished, I decidedto spend all these years in Mantrac-it is astable place to work, it is international, theinfrastructure is available to develop oneself.

NigeriaCONSTRUCTION

70

Maintaining marketsfrom West African basesHow infrastructure equipment distributor Mantrac serves Nigerian projectswith a comprehensive portfolio of products

Mr Ayman Ezz El Din, Managing Director atMantrac Nigeria Limited



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NigeriaCONSTRUCTION

72

AR: What is your experience in Nigeria?Ayman Ezz El Din: Nigeria is a big country for Mantrac. Theopportunities here are immense. The population is large, and theeconomy is one of Africa’s greatest. Nigeria is one of the two biggestmarkets for Mantrac in the world, the other being Russia.

AR: In what sectors of the economy is Mantrac operating in NigeriaAyman Ezz El Din: The oil and gas sector is very crucial market for us,we had therefore invested so much in developing our preparednessto serve this sector-our Port-harcourt branch had taken a chunk ofour investible funds, we had invested US$4mn in the branch todevelop it so we can have a state-of-the-art workshop there, we hadto spend this much to take care of the sensitive nature of the oil andgas potentials .We even have a special team dedicated to the oil andgas sector.

However, we are in all the sectors of the economy, we are verystrong in the banks, and telecoms as well. Though we pay specialattention to oil and gas, we are not limited to that sector, for instancewe are doing a turnkey project for the Murtala MohammedInternational Airport and the Abuja International Airport. In theIndustrial, we had also done a turnkey project for the Sokoto and theAshaka Cement companies among others.

AR: Is that why you are investing so strongly in Nigeria?Ayman Ezz El Din: We are interested in developing our expertise andin the process serve our customer better-we set up in Lagos, aCompletely Knock Down Parts, we had also set up an outfit to

manufacture the soundproof of our generators. Why are we doingthis-to contribute our quota towards the development of Nigeria, weare employing more people, we are increasing our local contentprofile, and we can say proudly that we are producing good qualityproducts that are comparable to any in the world. We had spent anearlier US$2.5mn and we are investing afresh a further US$1.5mn.

We are computerising the whole of our operation to improve ourquality-we want to run a professional outfit, to provide support forour customers so we can keep them happy.

AR: Are your customers just top end or do they cut across?We have an advantage on the top end market because of the qualityof our products, but our customers cut across, we serve both the topand the lower end. For the telecoms, we supply the 10KVA’s,but forthe industries, we do supply up to 10,000KVA.We also do gasgenerators, it helps to improve the environment.

AR: Can you explain the rationale for the branches expansion?Ayman Ezz El Din: We see a great future for Nigeria. We want to becloser to our customers, that is why we are creating four newbranches and expanding existing ones, so we can give the customerssupport. We had acquired four hectares of land in Abuja, the NigerianCapital so we can service our customers better.

AR: You are pushing the Earth Moving side of the business,why ?Ayman Ezz El Din: We have always been interested in theConstruction side, but we are pushing the frontier further-and indoing this, we are targeting both the private and public sectors-andwe are bringing all the product lines, both new and used dependingon what our customers need.

AR: What hope for the future?Ayman Ezz El Din: We have been in this market for over 60 years, aproof that we are in here for the long haul, we are investing in ourproducts, processes and people and we will keep investing. ■

Bola Olowo

Nigeria is an important marketfor Mantrac. The opportunities areimmense. The population is large,

and the economy is one of Africa’s most dynamic”


In Abuja, Nigeria, ACE Event Managementrecently highlighted the work of localcompanies and international suppliers inNigerian water and construction sectors -alongside the technologies available to thesecompanies to succeed in these sectors, andwith reference to the opportunities andinitiatives in developing the nation’sinfrastructure. The exhibition at West AfricaBuilding & Construction showcased

machinery, tools and techniques for thehousing and infrastructure constructionsectors - helping those providing civilengineering and housing projects in WestAfrica to see new materials and machinery foruse in construction, and talk to experts onhow best to use them.

Its companion event, Water Africa 2012,offered opportunities for companies to puttheir products and services before purchasersfrom central and local government, industry,agriculture, non-governmental organisations(NGOs) and other key players from the entireWest Africa region.

Seminar Programme:Exhibitors at Water Africa 2012 and WestAfrica Building & Construction 2012 wereable to take part in the accompanyingseminar programme, which was run in co-ordination with the relevant governmentministries. The programme provided an ideal

opportunity for exhibitors to get to know theproblems and needs of the water andconstruction sectors in West Africa, and toprovide information on their products andservices.

Many of the exhibitors at the exhibitionwere new to the West African market, andwere looking for local partners to help themsell and distribute their products and servicesin West Africa - recognising the greatpotential for business to be done at bothshows.

Building and commercial prospects remain strong inNigeria

Nigeria promotes building and water opportunities

West Africa Building &

Construction showcasedmachinery, tools and

techniques forinfrastructure markets


After taking a leap of faith and resigningfrom the former Concor Plant in 2010,entrepreneur Bobby Mabe’s structural

steel fabrication business is going fromstrength to strength under the coaching andmentorship of Murray & Roberts Plant.

Mabe named his company SowetoStructural Steel Engineering since it emergedfrom Soweto where he was born and bred. Heoffers design, fabrication, installation,maintenance and repairs of all types ofstructural steelwork as well as maintenance ofall earthmoving machines. Today he employstwo welders and a semi-skilled boilermakerand is currently working for Murray & RobertsPlant at their Amalgam premises, CrownMines, where he is provided with a regularflow of work by the company.

Soweto Structural Steel is also steadilyattracting outside projects; notably in 2010his company installed palisade fencing at theVentersdorp Magistrate’s Court. His biggestorder to date was awarded by ThyssenKruppEngineering in 2012 for Eskom’s MedupiPower Station and has been shared with

Concor Engineering, another Murray &Roberts company.

“I’ve been taught a great deal by my mentorsat Murray & Roberts Plant,” Mabe says, “and I’mguided by the philosophy that the way youfinish a job says a lot about your company.”

Based on his success to date, Mabe ispoised to be absorbed into the EnterpriseDevelopment programme of Murray &Roberts Plant.

Enterprise developmentMurray & Roberts Plant runs a thriving artisanapprenticeship programme and, in additionto its small business coaching andmentorship activities, the company is alsoputting energy into its own EnterpriseDevelopment programme.

“Our approach is hands-on involvement indeveloping a business owned and managedby a previously disadvantaged entrepreneur,rather than simply allocating a sum of moneyto an organisation which would undertakethis kind of development initiative on ourbehalf,” Jeremy Hallett, financial manager atMurray & Roberts Plant, says.

“For us, it’s not just a matter of accruingpoints on a Broad-Based Black EconomicEmpowerment scorecard, but about makinga positive and tangible impact in ourindustry with beneficial repercussions wellinto the future.”

A recent success story is the company’spartnership with Eastern Cape Tyres, foundedand managed by Matthew Nondawyi. Thefledgling tyre company operates from Murray& Roberts Plant’s premises and uses thecompany’s facilities, but like Mabe, is notrestricted to working solely for Murray &Roberts Plant. On the contrary, Nondawyi’s isencouraged and supported in his effort toexpand his business in the industry, deepenhis expertise and provide services for otherconstruction and engineering companies.Eastern Cape Tyres trades under the name ofTyre Zone in Gauteng. ■

SteelCONSTRUCTION

74

Steadily attractingstructural workFledgling steel business goes from strength to strength at new plant inSoweto, South Africa

Bobby Mabe (left) of Soweto Structural Steel Engineering and one of his employeespictured at Murray & Roberts Plant's Amalgam premises near Crown Mines.


Entrepreneur Bobby Mabe’s structural steel fabricationbusiness is going from strength to strength under thecoaching and mentorship of Murray & Roberts Plant.


© Terex Corporation 2011 – Terex is a registered trademark of Terex Corporation in the United States of America and many other countries.

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AsphaltCONSTRUCTION


Part of an extensive motorway networksome 185 km long, the ongoingGauteng Freeway Improvement

Project (GIFP) is creating a modern, world-class toll route system. The new road willprovide major impetus to socio-economicgrowth in South Africa’s most populous andcommercially active region.

Being built in stages by the South AfricanNational Roads Authority (SANRAL), theseroads radiate outward in all directions fromJohannesburg and Pretoria’s industrial andresidential centres. Some sections of theroad have already been completed, and theresults are impressive. Congestion has beenreplaced by free-flowing traffic, animprovement crucial to the area’s businessinterests.

National Route 12 (N12) is one of SANRAL’sstrategic priorities next in line forimprovement. Civil engineering contractorRaubex Construction has been hired tooverhaul a 10 km stretch known as Section19. The scope of the work is challenging, andexpected to last more than 30 months.

The existing N12 two-lane road will bereplaced by three major new interchanges,successive bridge widenings and three East-bound and three West-bound lanes. The newlanes will be placed in an existing median, anda central concrete barrier installed for safety.

Section 19 includes the main access pointto Gauteng’s West Rand region, which flowsto the agricultural and mining heartland ofMpumalanga province. Managing hightraffic densities as the roads are realigned isamong the challenges.

The durability of the well-travelled roadstarts with the creation of the base. The N12design calls for an emulsion and cementstabilisation mix for the sub-base layers. Thatwork is already under way.

“What makes the N12 project particularlynoteworthy is that all materials will beworked in-situ or sourced from cuttings thatwill make way for the new lanes and

interchanges along the route,” explainedRaubex Construction’s Johan van der Merwe.“Achieving this requires very complexplanning to meet incremental timeframes.”

Some 74 earthmoving machines will bedeployed on the N12 site at some timeduring the project, a high percentage ofwhich are Cat machines supplied andsupported by southern African Cat Dealer,Barloworld Equipment.

The role of the reclaimerA new Cat RM500 Rotary Mixer was anearly contributor on the jobsite. Themachine handled full-depth reclamationand soil stabilisation for both the new andexisting lanes.

Raubex was familiar with Cat rotarymixers. The firm gained considerableexperience with the smaller-sized RM300,one of which worked on an earlier portion ofthe freeway system.

Barloworld Equipment’s product manager,Johan Hartman, explained that the CatRM500 has an operating weight of 28,145 kgand is driven by a Cat C15 ACERT enginegenerating a gross power output of 403 kW.This compares with the Cat RM300 operatingweight of 24,454 kg and gross powerdelivery of 261 kW via its Cat C11 engine.Width of cut on both models is the same at2,438 mm, while the maximum cuttingdepth is 457 mm.

Dual-pump systemUnlike the RM300 unit, which has a singlewater pump for optimum moisture contentdelivery, the RM500 design incorporatesboth a water and an emulsion pump that aresimultaneously monitored in the cab via twoseparate flow meters.

“We needed a higher power-to-weightratio on the N12 to cope with the existingvaried in-situ premix materials, plus the dual

Mixing materials fora multi-lane highwayRaubex Construction deploys rotary mixer to form the backbone of roadreclamation work on a South African road


CONSTRUCTIONAsphalt


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mix stabilisation design makes the RM500the optimal choice,” van der Merwe said.

The RM500 pushed two tankers, onecarrying 18,000 litres of emulsion and theother 18,000 litres of water for the sub-basephase. The emulsion ratio was between 2-3per cent and cement around 1.5-2 per cent.

The RM500 water spray pump system hastwo flow-rate ranges, extending from 114 to1,836 litres per minute, with the emulsionspray pump system operating atpredetermined volumes of 114 to 757 litresper minute. With the RM500, Raubex wasable to reclaim and stabilise the 300 mmsub-base in one pass.

The equipment team on the ETB sectionwill comprise the Cat RM500, the latestgeneration Cat 140K motor grader, plus CatCS76 single drum 20-tonne vibratory rollers.

Rotor and the sub-baseIn the 300 mm sub-base layer, the RM500’suniversal rotor—equipped with its 200carbide-tipped bits arranged in a chevronpattern—came into play in reworking thesedense in-situ materials, providing thehighest level of material pulverisation andgradation. A three-position mode switch

enabled the rotor depth to be controlledmanually or automatically to a presetcutting depth to ensure that theengineering design was precisely met. Mostoften on the job the machine cut at a depthof 45 cm, including a 7 cm asphalt surface.

The RM500 mixing chamber features aheavy-duty hood with a large volumecapacity to handle deep mixing. This ensuresexact depth control, proper sizing andthorough blending of reclaimed materials.

The production requirements on Section19 are substantial. Raubex’s RM500 wasdeployed for the sub-base component,amounting to 135,000m3, while theselected 300 mm layer comprised some102,000m3.

Additionally, the new highwayconstruction will require some 9 millionlitres of emulsion, 5,000 tonnes of cement,114,000 tonnes of BTB, plus 530,000m2 of 35mm AE2 asphalt premix and the equivalentfor the 18 mm ultra-thin friction course(UTFC) overlay for the final riding surface.Black-topping will be carried out by RaubexLimited division, Roadmac Surfacing.

The purchase of sub-grade materials fromthe crushing plant was not required because

the machine was able to turn the reclaimedgravel into sub-base material.

“Logistical planning is the key, as is theoptimal deployment and utilisation of ourearthmoving fleet,” explained van derMerwe. “In this respect one of the featureswe particularly like about the RM500 is itsflexibility and all-round viewpoints to thefront and rear. The ability to hydraulicallyshift the entire cab from side-to-side, forexample, really speeds up the work rate asthere’s no need to plan in half-widths, plusthe mix is always visible from the operatorstation.”

This full width side-to-side featureenabled the operator to work up and downspecific stabilisation sections without havingto reverse back to the starting point of theworks, maximising on-site productivity.

Completing the transformation“Efficient use of materials and machines willbe interdependent on this contract and wehave invested in the best possibletechnologies to meet our completiontargets as we steadily transform Section 19into a multi-lane world-class highway,” vander Merwe added. ■


CEI ENTERPRISES,INC. an Astec Industries Company

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78

EQUIPMENT

Construction

Atlas Copco Construction Tools offers anew product variant of medium

hydraulic breakers (MB range), meetingsegmented market demands - focused onthe essential: high performance, lowweight, and essential features for yourefficient work.

The idea is simple: Breaker features arereduced to the essential to manage theirdaily targets. The new range comeswithout ContiLube II ® and the noiseprotection kit. What`s not reduced is thehigh impact power and the very goodpower-to-weight ratio. Due to the designand configuration, MB Essential breakersare powerful tools that do nothing elsebut their job. Regular service andmaintenance can be easily done on site.

Less weight, more power The power to weight ratio and theefficiency of Atlas Copco´s latestgeneration of medium hydraulic breakershave been significantly increased,compared to their predecessors. Due tolower weight and higher efficiency, lesshydraulic input power is required from thecarrier while maintaining maximumimpact performance. This allows smallercarriers to be used which results in lowerinvestment cost for the carrier.

Atlas Copco Essential breakers aredesigned to get tough and hard jobsdone. A genuine tool designed for millionsof blows under harsh conditions in thequarrying, demolition, renovation andconstruction industry. www.atlascopco.com

A range of Essential breakers

The MB 1200 Ebreaker, fromAtlas Copco



Spurred by the commercial production ofcrude oil since the end of 2010,Ghanaians have had a bumper year in

2011 when gross domestic product grew 13.6per cent. It was opportune that SRKConsulting - which has been active fordecades in Ghana and West Africa - opened anoffice in Accra last year.

Run by well-known local geologicalengineer, John Kwofie, the SRK Ghana officeinitially offered geotechnical services includingrock mechanics, tailings engineering and civilgeotechnics. Projects include work undertakenfor international gold mining company, NobleGold’s Bibiani mine and West African goldmining company, Avocet’s Inata mine.

More recently, the range of SRK’s traditionalservices - environmental, hydrogeological,mining engineering and resource geology,have been offered due to the demand forthese services in the region. In line with theplan to continuously augment its services, theoffice engaged a local geologist in April 2012.

While the oil sector was the star of last year’s

economic performance (it mushroomed over200 per cent in 2011, although admittedly off alow base), the minerals sector remains vibrant.

“Mining and exploration are importantcontributors to our high growth rate,” said MrKwofie. “Gold has been our biggest foreignexchange earner, but our mining of bauxite,diamonds and manganese is also importantand offer great opportunities.”

Exploration and exploitationMr Kwofie said that major occurrences ofindustrial minerals like limestone, silica sandand kaolin have been uncovered, and arecurrently only exploited on a small scale.Further opportunities may exist in phosphate,chromium, nickel, copper, lead, zinc anduranium - deposits of which have beendiscovered through the recently completedMining Sector Support Programme.

The exploration and exploitation processwill need more local skills to be developed,said Kwofie. The SRK Ghana office, in line withthe SRK business model, relies on localownership and empowerment, combinedwith a stringent set of quality standardsregulating all aspects of companyperformance.

“Our priority is to staff the practice with localexperts to augment the existing consultingteam,” said Kwofie. “It is vital that we nurtureand advance our supply of well-trained andexperienced engineers in our mining sector.”

The strong foundation of miningengineering skills in Ghana comes largely fromthe many cohorts of engineers in mining-related disciplines that have graduated fromthe Kwame Nkrumah University of Scienceand Technology in Kumasi and the Universityof Mines and Technology at Tarkwa - and whowent on to hone their specialities in miningoperations within the region and abroad.

While building its own local capacity, SRKGhana continues to draw on the group’sglobal network of skills to bring world-classexpertise to Ghana’s mining and explorationsector. ■

MININGGhana

79

Making inroadsin West AfricaGhana’s mineral sector will be looking to grow its foundation of world classtechnical and professional skills, as the sector catapults the economy to un-precedented growth rates

SRK's Accra office in Ghana


John Kwofie, Country Manager,SRK Consulting, Ghana

S13 ATR July 2012 Report I_Layout 1 21/06/2012 12:19

80

EQUIPMENT

MiningPowerscreen forcrushing and screeningPowerscreen, which provides mobile crushing, screening andwashing equipment, exhibited the XH500 impact crusher andthe Warrior 2400 screen at this year’s Intermat.

www.powerscreen.com

A new range of Doosan wheel loaders has beenlaunched, built on the design of the previousMega range. The Doosan DL250A, DL300A andDL420A wheel loaders offer improvements forbetter performance, greater operator comfort,easier handling and serviceability, as well asincreased durability. With bucket capacitiesranging from 2.5 to 4.5 m3, the loaders areintended to meet a variety of material-handling

needs from loading and transporting granularmaterial to industrial, mining and quarryingapplications. The DL250A loader is powered bya Doosan Tier 1 diesel engine while the DL300Aand DL420A models are driven by Doosan Tier2 engines, all of which are less sensitive to fuelquality than Tier 3 engines, whilst still offeringreduced fuel consumption and emissions. Thewidth of both the lift arm and the tilt lever onthe DL250A wheel loader has been increasedas well as the dump height increased to 2865mm at the 50o maximum tilt angle.

www.doosanequipment.eu


Loaders built onMega design

Passion Through Our PeoplePassion Through Our People

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Conference & Exhibition6 - 8 November 2012

Sandton Convention CentreJohannesburg, Republic of South Africa

www.powergenafrica.com

GLOBAL TECHNOLOGY FORLOCAL SOLUTIONS

Owned and Produced by: Presented by:

REGISTER NOW AND SAVE WITH OUR EARLY BIRD RATESFOR FURTHER INFORMATION PLEASE VISIT WWW.POWERGENAFRICA.COM

POWER-GEN Africa is a unique forum for the industry, combining both a world class conference with an exhibition showcasing the latest technological developments. This premier event will attract senior decision makers, enabling you to make crucial contacts within the sub-Saharan energy industry.

The inaugural POWER-GEN Africa will provide comprehensive coverage of the power needs, resources, and issues facing the electricity generation industries across Sub-Saharan Africa. Global attention is being paid to Africa’s power requirements as the continent continues to experience rapid growth and development, driving the need for more widespread and reliable electricity. With POWER-GEN Africa’s conference and exhibition focusing on all aspects of the power industry and bringing together the world’s leading power equipment suppliers with those developing power infrastructure in this dynamic region of the world, this is one event you cannot afford to miss.

Co-located with:

INVITATION TO ATTEND


Oerlikon offers a new MIG/MAGwelding machine : Citosteel 420,which enables quality welding andadvanced welding processes witha simple interface at a competitiveprice. Citosteel 420 is designed in a

modular system to fit with all users’ requirements.It is an optimum solution for carbon steel application in highlydemanding markets such as infrastructure, cranes and heavy liftingconstruction, boiler making, earthmoving machinery, shipbuilding,hydroelectric, and truck and railway construction.Citosteel 420 features:● Fully digital controlled inverter for process repeatability and

consequently higher welding quality with simpler regulation.● In Synergic mode, more than 80 synergies are available for flat

current.● Soft switching inverter (increasing efficiency of the power

source).● Full range of processes:

- Standard MIG/MAG.

- Speed Short Arc (for high qualitythin sheet welding & root passes).- Very high quality welds on thinmaterial.- MIG brazing.- Gouging (up to 6.3 mm diameterelectrode).- MMA coated electrodes.

● Powerful installation up to 420 A at 60 per cent.● Storage of 100 welding programmes (with expert wire feeder DMU

P500 or advanced remote control RC JOB).● Parameter locking with a digit code (with expert wire feeder DMU

P500 or advanced remote control RC JOB). When this function isactivated, the welder can still fine-tune the parameters in a +/- 20per cent range.

The machine’ user interface is designed with the operator in mind whichallows easy use. Its light weight and small dimensions make the machineideal for welding on site.

oerlikon-welding.com

82

EQUIPMENT/CLASSIFIED


Oerlikon’s MIG/MAG welding machine,the Citosteel 420

MIG/MAG equipment offers superior welding results

ABZ-Aggregate-Bau GmbH Co KG ....................................57Aggreko Middle East Limited ..59AKSA Jenerator Sanayi AS ..........58Astra Veicoli Industriali S.p.A. - Iveco Group........................47Broadcrown Ltd...............................56Caterpillar SARL ..............................71CEI Enterprises, Inc. ........................78Ciber Equipamentos Rodoviários Ltda. ............................49Cummins Power Generation ....27Delegation of German Industry & Commerce in Ghana (WACEE 2012)....................31Doosan Infracore ............................67Eaton Electrical South Africa Pty Limited ........................................84Eko Hotel and Suites ....................37Eksen Teknik Sunger San ve Tic Ltd. St ..............................28Emirates ..............................................17Etihad Airlines ..................................23ExxonMobil Corp. ..........................15F G Wilson (Engineering) Ltd.....21First Forever Co Ltd ........................48Gedore Tools SA (Pty) Ltd. ..........29Genmac Generators ......................51Greaves Cotton Limited ..............25Himoinsa ............................................65HSM GmbH........................................44IIR Exhibitions (Power Nigeria 2012) ....................33

IIR Exhibitions (Africa Electricity 2012) ................83J. S. Corrugating Machinery Co. Ltd...........................18JCB Power Products ......................55Kirloskar Brothers Ltd. ..................13Kirloskar Oil Engines Ltd. ............19Kohler Power Systems..................63Liebherr Export AG ........................69LionRock Power ..............................62Liquid Telecommunications Ltd. ..........39Mahindra & Mahindra Ltd.............9Mantrac Egypt..................................73Marelli Motori S.p.A. ........................2Metalgalante-Carmix....................77MTU South Africa (Pty) Ltd.........61New Terex Holding (UK) Ltd. ....75OKI Printing Solutions ..................45PennWell Corporation (Power-Gen Africa 2012) ............81Printacom ..........................................42Samsung Galaxy Note..................35SDMO Industries ............................53Shandong Shantui ConstructionMachinery Imp.& Exp.Co.,Ltd....11Sky Vision Global Networks ......41Volvo Construction Equipment Int. ....................................5Volvo Penta International..............7Zest - WEG Group............................80

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23-25 October 2012GALLAGHER CONVENTION CENTRE

Johannesburg, South Africa

South Africa plans to invest US$58 billionon power and water projects betweennow and 2021

Tap into the wealth of this exciting market byexhibiting at Africa Electricity

The comprehensive showcase for the

power, lighting, renewable, nuclear and

water sectors in South Africa

www.africaelectricity.com/ARJ

Call our team to discuss the various opportunities available to your company

Tel: +971 4 336 5161Fax: +971 4 335 3526Email: [email protected]

Partner Events: Organised by:

South g,urJohannesbGHER CONGALLA

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Power distribution Power quality Control and automationPower monitoring

and managementServices

In 2011, Eaton celebrates its 100th anniversary and a heritage of innovation and expertise that has positioned the company to answer some of the world’s toughest power management challenges.

Eaton Electrical – [email protected] | www.eaton.com/electrical

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